A tumultuous start to 2021 will see the US publishing this Friday its monthly employment report at 13:30 GMT. The final Nonfarm Payrolls report of 2020 is set to show a modest gain of 100,000 jobs amid the winter wave of the virus.
The greenback is temporarily strong across the board, but it remains far from bullish as it trades near its recent multi-month lows against most of its major rivals. According to FXStreet’s Chief Analyst Valeria Bednarik, dollar gains are likely to be temporal and short-lived.
See – Nonfarm Payrolls Preview: Forecast from five major banks for December jobs report
Key quotes
“The December Nonfarm Payroll is expected to show that the country added just 100K new positions in the month, although the unemployment rate is foreseen steady at 6.7%. Average hourly earnings are expected to have grown by a modest 0.2% MoM, while the annual figure is foreseen unchanged at 4.4%.”
“Further dollar’s gains are likely, but only in the near-term. Risk aversion could return if the report comes worst than anticipated, and favour the American currency. Still, the EUR/USD pair holds in its latest comfort zone around 1.2250, and dips will attract buyers.”
“USD/JPY will likely follow the lead of yields while commodity-linked currencies will move alongside equities.”
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