US dollar has fallen for the fourth day in a row.
On Friday, the US Dollar (USD) fell further, creating a negative picture for the US Dollar against the majority of other currencies. The Swiss Franc (CHF) and the Japanese Yen (JPY) are the primary competitors. That are gaining ground against the Greenback. The move is becoming increasingly unusual. With European shares in the green at the morning bell. Which could suggest to traders lowering their Greenback exposure ahead of US Job Report.
Prior to the US Employment Report, newswires are flooded by UK and French election news.
On Friday, there is only one issue on the bulletin board about the US economy. The June employment data. The lowest projection is 140,000, with a potential upside of 237,000. Any number below 140,000 might cause a significant reaction in the greenback. As the jobs market is viewed as the last man standing in a situation where all other US economic indicators are softening or turning downward.
Daily Market movers: Here comes NFP! US Dollar Index momentarily dipped below 105.00 at the opening of the European session.
US Dollar (USD) fell further, creating a negative picture for the US Dollar against the majority of other currencies. The Labour Party achieved a resounding victory in the United Kingdom, and Keir Starmer is poised to become the next tenant of 10 Downing Street. This finding is increasingly odd, given the moves to Right in Europe.
Moreover According to recent surveys, Marine Le Pen’s far-right National Rally party is no longer in position to win a majority in France’s election on Sunday.
At 12:30 GMT, the US Employment Report for June will be issued.
Nonfarm payrolls are predicted to fall to 190,000 from 272,000, with the lowest estimate being 140,000 and the highest being 237,000.
Average hourly earnings are expected to rise by 0.3% in June, compared with 0.4% in May.
Furthermore The unemployment rate is predicted to remain constant at 4%.
Expect dramatic market reactions if the Nonfarm Payrolls report falls significantly below the lowest estimate (weaker USD) or rises above the highest (stronger USD).
Fed will release its Monetary Policy Report at 15:00 GMT.
The Fed will release its Monetary Policy Report at 15:00 GMT. This report is provided semi-annually to the Senate Banking, Housing, and Urban Affairs and the House Financial Services Committees.
Asian stocks were unable to finish the week on a high note. With both China and Japan closing down. European equities are rallying in response to the UK outcome. The UK FTSE 100 was up over 1% at one time before dropping back to flat ahead of the US session.
Despite recent comments by Fed officials, the CME Fedwatch Tool is widely supportive of a rate cut in September. The current odds for a 25-basis-point decrease are 66.5%. A rate halt is 27.4% likely, while a 50-basis-point rate drop has a small possibility 6.1% chance.
The US 10-year benchmark rate is currently at 4.33%, a new weekly low.
