The Nonfarm Payrolls report for January will be out this Friday and the US is expected to have recovered some 50K jobs’ positions in January. The dollar strengthens ahead of the release amid stimulus hopes and needs a strong number to keep rallying, Valeria Bednarik, Chief Analyst at FXStreet, reports.
Key quotes
“The country is expected to have added 50K new positions in the month, after losing 140K in December while the Unemployment Rate is expected to have remained steady at 6.7%.”
“An upbeat report could further boost the dollar, regardless of equities’ behaviour, particularly against its European rivals. Among those, the EUR is the weakest, as the sterling became more interesting after the BoE cooled negative rates’ hopes.”
“Commodity-linked currencies are more likely to fall against their American rival if Wall Street comes under selling pressure. Higher yields will push USD/JPY up, no matter the outcome of the report.”
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