The reading could be slightly below expectations, judging by mixed employment indicators revealed earlier this month
Ahead of the US jobs report, the dollar looks apathetic, continuing to oscillate in tight trading ranges these days despite heightened volatility in the stock markets across the globe. Overnight, Wall Street stocks saw a solid bounce, helped by reports that the US Senate voted to extend government funding into February.
Later today, the employment report will be in focus. However, this time, the release would be less likely to affect markets substantially as the Federal Reserve’s monetary policy looks predetermined already. As a reminder, earlier this week, Powell stated that the central bank plans to accelerate its taper plans despite the virus-related risks. Of note, earlier today Fed’s Mester said that Omicron risks are fueling further inflation pressures in the US. Furthermore, she noted that at least one or two rate hikes next year would be appropriate. The latest comments from the Fed official added to the bank’s hawkishness.
The US economy is expected to have created 553,000 jobs in November. However, the reading could be slightly below expectations, judging by mixed employment indicators revealed earlier this month. In particular, the ADP employment report revealed a 534,000 rise in jobs, below October’s 570,000 reading, jobless claims fell to a fresh pre-pandemic low and the ISM manufacturing employment component came in at 53.3 versus 52.0 previously.
Anyway, the greenback will hardly be much affected by the release and could continue to cling to a limited range ahead of the weekend. EURUSD is trending lower for the third session in a row and got back below the 1.1300 figure. The common currency struggles to stage a more sustained recovery amid persisting worries about the new coronavirus variant and the continuing speculations that the Fed may reduce asset purchases at a faster pace.