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9 Jan 2015
Better than expected US NFP could reignite USD rally – MP
FXStreet (Barcelona) - Alfonso Esparza, Senior Currency Strategist at MarketPulse, notes that an upbeat US NFP number today might lead USD to advance against all major currencies and might validate a further lower price point for the EUR/USD pair.
Key Quotes
“Forecasts and predictions from market analysts are pointing to a NFP report showing 236,000 new jobs added in December. This is considerably lower than the November print of 321,000, but it would still result in a strong jobs gain overall.”
“Given the way November’s NFP defied expectations there is the possibility that the number will be revised downward.”
“The EUR/USD has been losing ground as the European Central Bank keeps promising a sovereign bond-fueled quantitative easing program while economic indicators continue to warrant intervention.”
“The NFP report would be the first indicator this year that validates a lower price point for the pair if it continues to beat expectations. Regardless of the unemployment rate, a gain higher than 200,000 jobs would signal the U.S. economic recovery is on track, and it will give a shot in the arm to the USD’s advance versus not only the EUR but all major and exotic pairs.”
“A weaker-than-expected NFP would not have such a negative effect, unless jobs gains don’t increase north of the 200,000 threshold. A disappointing digit will fuel anxiety about the American economy especially after the turbulent start to the year.”
Key Quotes
“Forecasts and predictions from market analysts are pointing to a NFP report showing 236,000 new jobs added in December. This is considerably lower than the November print of 321,000, but it would still result in a strong jobs gain overall.”
“Given the way November’s NFP defied expectations there is the possibility that the number will be revised downward.”
“The EUR/USD has been losing ground as the European Central Bank keeps promising a sovereign bond-fueled quantitative easing program while economic indicators continue to warrant intervention.”
“The NFP report would be the first indicator this year that validates a lower price point for the pair if it continues to beat expectations. Regardless of the unemployment rate, a gain higher than 200,000 jobs would signal the U.S. economic recovery is on track, and it will give a shot in the arm to the USD’s advance versus not only the EUR but all major and exotic pairs.”
“A weaker-than-expected NFP would not have such a negative effect, unless jobs gains don’t increase north of the 200,000 threshold. A disappointing digit will fuel anxiety about the American economy especially after the turbulent start to the year.”