Upbeat U.S. Non-Farm Payrolls (NFP) Report to Fuel EUR/USD Losses

Upbeat U.S. Non-Farm Payrolls explained by professional Forex trading experts the “Upbeat U.S. Non-Farm Payrolls” FX trading team.

Upbeat U.S. Non-Farm Payrolls

The U.S. Non-Farm Payrolls (NFP) report by fuel the near-term decline in EUR/USD as employment is projected to increase another 195K in November, while Average Hourly Earnings are expected to climb an annualized 2.7% during the same period.

A further improvement in labor market dynamics accompanied by signs of stronger wage growth may heighten the appeal of the greenback as it encourages the Federal Open Market Committee (FOMC) to further normalize monetary policy in 2018, and the dollar may exhibit a more bullish behavior over the remainder of the year should the central bank stay on its current course of delivering three rate-hikes per year.

However, another series of lackluster data prints may encourage the FOMC to adopt a more cautious tone at its last interest rate decision on December 13, and the greenback may face a more bearish fate if the fresh developments drag on interest-rate expectations. Interested in watching the market reaction? Sign up and join the DailyFX Team LIVE to cover the NFP report.
The U.S. economy added another 261K jobs in October following an 18K expansion the month prior, while the Unemployment Rate unexpectedly narrowed to an annualized 4.1% from 4.2% as the Labor Force Participation Rate slipped to 62.7% from 63.1% during the same period. A deeper look at the report showed Average Hourly Earnings also slowing to 2.4% per annum from a revised 2.8% in September, and signs of subdued wage growth may impede on the Fed’s ability to further normalize monetary policy as the central bank struggles to achieve the 2% target for inflation.

Nevertheless, the market reaction was short-lived, with EUR/USD quickly pulling back from the 1.1690 region to end the day at 1.1607. Don’t have a plan for trading the U.S. NFP report? Download and reviewing the FREE DailyFX Advanced Guide for Trading the News to learn our 8 step strategy

Upbeat U.S. Non-Farm Payrolls Conclusion

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