TRADING THE NEWS: U.S. NON-FARM PAYROLLS (NFP)
A 185K expansion in U.S. Non-Farm Payrolls (NFP) accompanied by signs of faster wage growth may keep EUR/USD under pressure as it encourages the Federal Open Market Committee (FOMC) to implement higher borrowing costs over the coming months.
A further improvement in labor market dynamics may encourage the FOMC to deliver four rate-hikes for 2018 as ‘the Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate,’ and Chairman Jerome Powell and Co. may show a greater willingness to extend the hiking-cycle as the economy nears full employment.
However, a batch of lackluster developments may produce headwinds for the greenback as it drags on interest-rate expectations, with EUR/USD at risk for a rebound as it preserves the March range.
IMPACT THAT THE U.S. NFP REPORT HAS HAD ON EUR/USD DURING THE PREVIOUS PRINT
Period
Data Released
Estimate
Actual
Pips Change
(1 Hour post event )
Pips Change
(End of Day post event)
FEB
2018
03/09/2018 13:30:00 GMT
185K
313K
+17
+20
February 2018 U.S. Non-Farm Payrolls (NFP)
EUR/USD 5-Minute Chart
U.S. Non-Farm Payrolls (NFP) surged 313K in February amid forecasts for a 205K expansion, while the jobless rate held steady at an annualized 4.1% as the Labor Force Participation rate unexpectedly widened to 63.0% from 62.7% in January. A deeper look at the report showed Average Hourly Earnings narrow to an annualized 2.6% from a revised 2.8% in January to mark the first slowdown since October, while Average Weekly Hours bounced back during the same period as the gauged climbed to 34.5 from 34.3 the month prior.
No Comments