All Eyes on NFP: Markets Brace for Key US Jobs Data

Hello traders, and welcome to Friday. Today is non-farm payrolls Friday, the key event for global markets, and all eyes are on the upcoming jobs data from the US. Expectations are modest – payrolls are forecast at 52,000, which is relatively low, especially after Wednesday’s ADP employment change disappointed significantly. Alongside the headline jobs number, traders will also focus on average hourly earnings, which could be just as important for the dollar’s direction.

The macro calendar isn’t limited to the US. Earlier today, we had a speech from Bank of Japan Governor Ueda, which was perceived as dovish and triggered a sharp weakening of the yen. Later in the day, we’ll hear from ECB President Christine Lagarde and Bank of England Governor Bailey, adding extra flavor to today’s trading session. The week will wrap up with ISM Services PMI from the US, expected at 51.8, making today unusually heavy for a Friday.

On the charts, sentiment is mixed but leaning positive. Indices are climbing, with US futures pushing close to or even above all-time highs, suggesting that concerns about a US government shutdown are not weighing on sentiment. In the FX space, the yen remains weak, the US dollar is flat, and the Australian dollar stands out as one of the strongest currencies in the pack, with other European currencies also firming. On the commodities front, oil continues to struggle, marking a poor week overall, with losses around 7% and fresh mid-term lows. In contrast, metals are thriving, extending gains and holding near record levels. Finally, cryptocurrencies are enjoying an impressive week – Bitcoin surged from local lows to fresh tops, underscoring renewed bullish momentum.

So, as we approach the start of the European session, markets are positioning for the big reveal. The NFP release will set the tone not only for today, but for how we close out this very eventful week.

Source: https://www.axiory.com/analytics/market-news/markets-push-higher-as-nfp-countdown-begins