EUR/USD: Euro Steady Near $1.06 as Traders Eye Looming US Jobs Data

Markets are hoping to see 202,000 jobs created in November. Any meaningful deviation from that figure could spell trouble for the Fed.

• The EURUSD pair was moving with caution early Friday ahead of the keenly anticipated jobs report, due for release later today. The euro was going for about $1.0570, fairly unchanged on the day after it shot up to that level on Thursday, exiting a short-term downturn that lasted about three days. Volatility is expected to pick up with the $1.06 level as immediate resistance — the euro has been unable to break above it for the past couple of weeks.
• But all that may change depending on what today’s report shows. The nonfarm payrolls, commonly known as jobs data, will be the highlight of the week. It will show how many new hires were tapped to join the American economy, which in October produced only 12,000 new jobs. But that’s mainly because several one-off factors aligned for the worst job figure since the pandemic era. What’s in the cards now?
• Traders have priced in economic growth of 202,000 jobs created in November. If materialized, this printout will indicate that the labor market has largely digested October’s dire events and is back on a healthy upward trajectory. Any meaningful deviation from that figure will suggest otherwise — a report too cold will mean that the economy is losing momentum fast. And a report too hot will translate into higher probability of interest rate cuts by the Federal Reserve.