The US dollar has come under pressure recently as increasing risk appetite drove up demand for higher-yielding currencies and equities. However, the July reading of NFPs is projected to show that the pace of job losses slowed, and the last time we saw a dramatic improvement, the US dollar ignored risk trends and rallied in response. Will we see a similar reaction on Friday?
Trade this news report live with DailyFX Currency Strategist John Kicklighter tomorrow morningArguments for an Improvement in Non-Farm Payrolls
1. Initial jobless claims (4-week avg) fell to a 27-week low of 555,250 during the week ending 8/1
2. Continuing claims (4-week avg) eased to 6,278,750 during the week ending 7/25, from 6,769,000 in the week ending 6/27
3. ADP employment fell by the least since October 2008, coming in at -371,000 in July
4. Challenger job cuts fell 5.7 percent in July from a year earlier, marking the second straight decline
5. ISM manufacturing employment component rose to 45.6 from 40.7, signaling that the pace of job losses slowed
Arguments for a Deterioration in Non-Farm Payrolls
1. Conference Board, University of Michigan consumer confidence both fell during July to 3 and 4-month lows, respectively
2. ISM non-manufacturing employment component fell to 41.5 from 43.4, signaling a steeper drop in jobs
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