US Jobs Report in Focus - Payrolls & Wages Data to Impact Fed Rate Cut Bets and Dollar
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US Nonfarm Payrolls for January are forecast to show 180K jobs added, down from December's 216K. The unemployment rate is expected to tick up to 3.8%.
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The jobs data could impact market expectations for Fed rate cuts in March. Markets now see just a 35% chance after the Fed pushed back on early cuts.
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An NFP figure above 200K with higher wage inflation could support the Fed's hawkish stance and the Dollar. A disappointment may spark short-lived USD selling.
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EUR/USD could see big moves on the jobs data. Upside targets are the 21-day SMA near 1.0891 and 50-day SMA around 1.0920. Support is at the 200-day SMA.
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The Dollar was mixed today but fell most against the Australian Dollar, down 0.32%. US yields drifting lower may undermine near-term USD support.