US Dollar surge stalls as traders anticipate the US Jobs Report.
The US Dollar (USD) consolidates on Friday after trading strongly higher this week, with all eyes on the US Employment Report, particularly the Nonfarm Payrolls (NFP) figures. The data will be critical, as good readings might push the DXY farther away from the tight range it has been moving in this month. Meanwhile, if the results come out poorer than anticipated, The greenback could return to the range.
The economic calendar contains only one major component: the aforementioned US Jobs Report.
As usual, the Nonfarm Payrolls print will receive the most attention. However, indicators such as average hourly wages and the unemployment rate may be second-tier data that ultimately move the US dollar higher or down after the initial volatile reaction.
Daily Market movers: US Dollar Index is flirting with breaking out of the September range following a failed break on Thursday.
If Israel targets Iranian oil fields, the US dollar would likely see volatility. At the time of writing, conversations between Israel and the Biden administration over a green light for the assaults were still ongoing.
The US jobs report for September is due at 12:30 GMT.
Nonfarm payrolls predicted to drop to 140,000, down from 142,000 in August.
Monthly average hourly earnings should fall further, to 0.3% from 0.4%.
The unemployment rate is predicted to hold steady at 4.2%.
At 13:00 GMT, Federal Reserve Bank of New York President John Williams makes the opening comments at the New York Fed-organized event “The Future of New York City: Focus on Jobs”.
Equities are rebounding somewhat across the board, with Japan closing higher on Friday. European shares make slight gains, as US futures remain steady.
The CME Fedwatch Tool predicts a 69.3% possibility of a 25 basis-point rate drop at the next Fed meeting on November 7, with 30.7% expecting another 50 basis-point cut.
The The US 10-year benchmark rate is currently at 3.86%, a 30-day high.
