Improving labor markets are bringing Federal Reserve officials closer to a time when they can get back to bread-and-butter central banking, where there’s a tighter connection between changes in economic data and movements in short-term interest rates.
The Federal Open Market Committee last month debated how much slack remains in labor markets, and came closer to an agreement on how to exit from the most aggressive stimulus in the Fed’s 100-year history, minutes from the July meeting showed.
Some participants “were increasingly uncomfortable” with the committee’s forward guidance on keeping its benchmark rate low for a “considerable time,” according to the minutes published today. “Many” participants said they might have to raise borrowing costs sooner than they had anticipated.
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EUR/USD holds above 1.0700 ahead of US jobs report
EUR/USD stays in a consolidation phase above 1.0700 after closing the previous two days in positive territory. Investors eagerly await April jobs report from the US, which will include Nonfarm Payrolls and Unemployment Rate readings.
GBP/USD advances to 1.2550, all eyes on US NFP data
The GBP/USD pair trades on a stronger note around 1.2550 amid the softer US Dollar on Friday. Market participants refrain from taking large positions as focus shifts to April Nonfarm Payrolls and ISM Services PMI data from the US.
Gold remains stuck near $2,300 ahead of US NFP
Gold price struggles to gain any meaningful traction and trades in a tight channel near $2,300. The Fed’s less hawkish outlook drags the USD to a multi-week low and lends support to XAU/USD ahead of the key US NFP data.
XRP edges up after week-long decline as Ripple files letter in reply to SEC’s motion
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US NFP Forecast: Nonfarm Payrolls gains expected to cool in April
The NFP report is expected to show that the US economy added 243,000 jobs last month, sharply lower than the 303,000 job creation seen in March. The Unemployment Rate is set to stay unchanged at 3.8% in the same period.