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Forex Today: US Nonfarm Payrolls to Increase Volatility Ahead of the Weekend

Here’s what you need to know to trade today Friday December 8:

The US Dollar (USD) weakened against its major rivals as risk-on flows returned to markets on Thursday, and the DXY Dollar Index snapped a three-day winning streak. Market participants will closely monitor the US employment report for November, which will include nonfarm payrolls (NFP) and wage inflation data, before the weekend. The US economic agenda will also include University of Michigan preliminary survey on consumer sentiment in December.

See: US NFP Preview: Nonfarm Payrolls Growth Expected to Accelerate Slightly in November

After a mixed opening, Wall Street’s main indices gained ground on Thursday with the Nasdaq Composite leading the gains with a 1.5% advance. Meanwhile, the benchmark 10-year US Treasury yield remained below 4.2%, after losing more than 3% in the first half of the week. Early on Friday, US stock index futures are trading flat and the DXY index consolidates Thursday’s losses slightly above 103.50. The unemployment rate in the US is expected to remain unchanged at 3.9% and the NFP is expected to increase by 180,000.

Quote of the US dollar this week

Below is the percentage change of the US Dollar (USD) against major currencies this week.

USD EUR GBP CAD AUD JPY NZD CHF
USD 0.96% 1.01% 0.67% 1.03% -1.69% 0.83% 0.88%
EUR -0.99% 0.06% -0.30% 0.07% -2.71% -0.11% -0.08%
GBP -1.05% -0.05% -0.34% 0.02% -2.74% -0.17% -0.13%
CAD -0.67% 0.30% 0.35% 0.37% -2.39% 0.19% 0.22%
AUD -1.04% -0.07% -0.02% -0.37% -2.73% -0.19% -0.15%
JPY 1.63% 2.62% 2.83% 2.35% 2.69% 2.48% 2.54%
NZD -0.84% 0.13% 0.17% -0.17% 0.19% -2.50% 0.04%
CHF -0.90% 0.09% 0.13% -0.21% 0.15% -2.61% -0.04%

The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).

During the Asian session, data from Japan showed that the Gross Domestic Product contracted at an annual rate of 2.9% in the third quarter. This result was worse than the 2.1% contraction estimated by the markets. After the sharp fall on Thursday due to the surprise of the Bank of Japan, the pair USD/JPY appears to have stabilized slightly above 144.00 on Friday.

He EUR/USD recorded small gains on Thursday, but failed to regain the 1.0800 level. On European morning Friday, the pair is moving up and down within a tight range below this level.

He GBP/USD It broke a three-day losing streak before entering a consolidation phase slightly below 1.2600 on Friday. The Bank of England will release Consumer Inflation Expectations data later during the European session.

The price of Gold It failed to move in either direction and closed Thursday virtually unchanged, slightly below $2,030. XAU/USD fluctuates near that level early on Friday.

Source: Fx Street

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