Non-farm payrolls

GBPUSD Forecast: The GBPUSD is currently hovering below the key 1.3430 resistance level, with Fed Chair Powell's recent speech introducing a hawkish tone to the rate cut expectations, reinforcing the strength of the DXY and limiting further weakness.

Like it or hate it, there is clearly demand for the USD index around 100. And should NFP and ISMs outperform against next week, it might spark a dollar rebound.

All eyes will turn to the US jobs report on Friday, as the market refocuses on Fed policy after the Fitch downgrade of US credit rating caused a risk off response in the markets, which sent the dollar and long-dated bond yields surging higher. The US dollar, gold and EUR/USD outlook could be impacted if we see a jobs report that deviates significantly from expectations.

The AUD/USD outlook has been dealt a double or even triple whammy, as risk appetite turned sharply negative, US data improved further and concerns over China lingered. Will we now see another strong US non-farm payrolls report and further dollar strength? It looks that way, as we will explain in this NFP preview article.

The leading indicators point to a slightly below-expectations reading in this month’s NFP report, with headline job growth potentially coming in somewhere in the 225K-325K range

The leading indicators point to a slightly above-expectation reading in this month’s NFP report, with headline job growth potentially coming in somewhere in the 425-525k range.

After back-to-back readings above 900K net new jobs, traders and economists are expecting “just” 750K jobs this month...

Never one to rock the boat dramatically, Powell clearly took a cautious, non-committal approach in his address...

Despite today's strong report, there are reasons to be concerned about the prospects for the US economy...