The United States Bureau of Labor Statistics is set to release its jobs data this Friday at 12:30 GMT. Traders are eagerly awaiting the Nonfarm Payrolls (NFP) report, which should provide some new directives for where markets will run. Our jobs forecast expects 135,000 new jobs in March. This is a decrease from the 151,000 jobs in February. This release has the potential to be very impactful on the Federal Reserve’s interest rate trajectory and US Dollar performance in general.
This week’s development on the markets indicate that the US Dollar is recovering its footing. This after a particularly rough patch from the double whammy of trade war worries and recession fears. These factors would have once caused a sell-off in the currency, but traders instead have found themselves with some cautious optimism. The changing mood was enough to push gold to new supply record highs on Friday. Major dropoffs appear improbable at this point.
Some market analysts think the current risk-off sentiment should continue to support gold prices in the short term. This feeling is in part fueled by tariffs that were implemented during Donald Trump’s administration. In times when investors grow concerned over rampant economic uncertainty, gold can become one of the most highly sought after safe haven assets. At the same time, increasing speculation about when the Federal Reserve will be cutting rates has heaped even more pressure on the US Dollar.
That jobs data, when it does come, might be one of the most important inputs into setting expectations for what the Fed does next. Another much-better-than-expected jobs report would likely further raise confidence in a strong rebound as well as further dampen expectations for any rate cuts. A bad report could increase the likelihood that the Fed sticks to its dovish guns and put further pressure on the US Dollar.
During the European session on Friday, the EUR/USD pair is continuing its corrective move, with a sight line toward 1.0950. This trend mirrors broader market alienation and traders’ responses to macroeconomic figures published from each side of the Atlantic. Currency pairs move every second according to the events in the market. Participants keep their ears to the ground, waiting for hints to inform their buying and selling plans.
Please note that the ideas and judgments expressed in this piece are solely those of the authors. This is not investment advice, but an opinion expressed for informational and educational purposes only. Disclaimer: FXStreet and the author are not registered investment advisors. According as such, you must not treat any or all of the contents of this article as investment advice.
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