The major currency pair is barely moving on Friday afternoon; investors are “saving strengths” while expecting the evening statistics.
At the end of the week, EURUSD is anything but active in anticipation of the data on the US labor market. The current quote for the instrument is 1.0834.
The American regulator warned investors earlier on several occasions that they should be ready for double-digit unemployment numbers – today, they’re going to see how terrible the reality in the labor market is. On average, the unemployment rate in the USA is expected to skyrocket from 4.4% in March to 16.0% in April. The worse the actual reading, the more pressure the USD will suffer from.
The Non-Farm Employment Change might have lost much more last month than in March, by several-fold. The indicator is expected to show -22M in April after being just 701K in the previous month. Considering that the average NFP growth was from 90 to 140K per month, the situation on the labor market is looking really terrible.
It is highly questionable whether the American economy will be able to restore (and how fast?) at least some part of closed jobs. And what kind of employment it might be? Most certainly, part-time jobs, hence lower incomes. However, even they will be a good start. The May readings on the labor market are expected to be as terrible as the April ones and the first signs of recovery might be seen only in the July data, providing the quarantine restrictions are removed.
Orgin: RoboForex
