NFP Preview: Encouraging figures to weigh on the dollar

Nonfarm Payrolls are expected to show that the US recovered 3 million jobs in June. USD is heading into the event with a negative tone and could fall with a positive report, mainly if equities keep running, FXStreet’s Chief Analyst Valeria Bednarik informs.

Key quotes

“The Nonfarm Payrolls report is expected to show that the country recovered 3 million jobs in the month, while the unemployment rate is seen contracting from 13.3% to 12.3%. Average Hourly Earnings are still seen well above average, although returning to pre-pandemic levels. The yearly figure is seen at 5.3% from 6.7% in the previous month. Monthly Average Hourly Earnings are foreseen at -0.7% from -1.0%.”

“An encouraging outcome could further fuel equities and keep the safe-haven dollar under pressure. The greenback has then more chances of advancing against the JPY and the CHF while rallying equities will favor the most commodity-linked currencies.”