By ForexTime
US rates were left unchanged yesterday, but Fed Chair Powell signalled that a cut could happen in September – depending on economic data.
This puts extra focus on the incoming NFP report which may shape bets around how many times the Fed cuts interest rates this year.
Markets expect the US economy to have created 175k jobs in July, compared to the 206k in the previous month while the unemployment rate is expected to remain unchanged at 4.1%.
Ultimately, further evidence of cooling labour markets may solidify expectations around the Fed making a move next month.
Traders have priced in a 25-basis point Fed cut by September with a 90% probability of another cut by November and 87% of a third cut by December!
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With all the above said, here are 3 assets that could be rocked by jobs report:
FXTM’s NAS100 could see heightened volatility on Friday due to not only the NFP report but also corporate earnings from Amazon and Apple.
The index staged a sharp rebound mid-week with prices challenging the 19500-resistance level.
Gold is up roughly 2% this week despite kicking off Thursday’s session on a shaky note.
The precious metal remains supported by geopolitical risk and expectations around lower US interest rates. Given it’s zero yielding nature and sensitivity to US rate speculation, gold could see heightened volatility on Friday.
A soft jobs report is positive for the precious metal while a strong report could drag prices lower.
It remains a choppy affair for the USDInd which is trapped within a range on the daily charts.
Bulls and bears are likely to remain entangled in a fierce tug of war until the scales of power shift in one direction. This catalyst could be on the incoming NFP report on Friday.
Support can be found at 103.65 and resistance at 104.70.
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