Are you ready for today’s NFP?
It’s the first Friday of the month, so the US traditionally releases employment data at 12:30 GMT:
Non-Farm Payrolls (forecast: 184K; previous: 195K);
Unemployment rate (forecast: 7.5%; previous: 7.6%).
Initial jobless claims unexpectedly declined by 19K to 326K in the week ended July 27, the lowest level since January 2008. ADP employment report for July released this week was also very positive and better than expected.
Western Union: “We had much better-than-expected U.S. employment results, which are helping to guide the dollar strength we’re seeing. Any upside surprises we see from tomorrow’s economic reports will also play very strongly into the dollar’s favor and increase changes of tapering by the end of the year.”
Most analysts and investors are looking forward to a solid increase in American payrolls. Note, however, that as the market players are very long on USD, the greenback can slide in case of disappointment, so one has to be cautious.