Investors await US Nonfarm Payrolls data, with Deutsche Bank forecasting a modest gain of 65k jobs and steady unemployment at 4.2%.
The USD/JPY pair remains nearly unchanged at 158.42 in European trading as markets brace for the US July Nonfarm Payrolls report. The data, due at 12:30 GMT, is expected to show a slight improvement in job growth, with economists projecting a 65k increase in headline payrolls compared to 57k previously. Private payrolls are also forecast to rise by 65k, up from 49k in the prior month.
Deutsche Bank anticipates the unemployment rate will hold steady at 4.2%, unchanged from last month’s 4.19%, despite a 0.3pp decline in labor force participation. The report’s outcome could influence the Federal Reserve’s monetary policy stance, particularly in the absence of clear forward guidance.
The US Dollar Index (DXY) trades flat at 100.00 ahead of the release, while the Japanese Yen has underperformed this week amid no signs of further US-Japan joint intervention.