USD strengthens ahead of US labor market data

The greenback was trading higher on Friday, waiting for the labor market update, due later in the day. 

Yesterday, US initial jobless claims fell by 51,000 to 364,000, reaching a fresh pandemic low as the economy reopens. Wednesday’s ADP report showed 692,000 new jobs, more than the 600,000 expected.

Today, the main focus will be on non-farm payrolls. The consensus is 700,000 new jobs added in June, up from 559,000 in May. As a result, the unemployment rate should improve a notch to 5.7%.

However, with both the ADP and the weekly jobless claims coming in better than expected, investors secretly hope for a higher payroll number.

Better data should boost the USD and send down precious metals, while stocks are bonds are harder to predict cause their last reactions were unexpected.

From other news, the WTI oil continues in its winning streak, jumping above the 75 USD level yesterday and printing the highest price since October 2018. The next target would be at 80 USD, October 2014 highs.

Source: https://www.axiory.com/market-news/usd-strengthens-ahead-of-us-labor-market-data