US April NFP Preview: USD to gather strength against its rivals on an upbeat reading

The US economy is expected to add nearly 1 million jobs in April as leading indicators point to another strong Nonfarm Payrolls report. In the view of FXStreet’s Eren Sengezer, the US dollar is set to take advantage of outstanding job figures.

Upbeat labor market outlook

“The US Bureau of Labor Statistics is expected to announce an increase of 978,000 in Nonfarm Payrolls (NFP) in April following March’s impressive print of 916,000. The Unemployment Rate is seen edging lower to 5.8% from 6% with the Labor Force Participation Rate, which stood at 61.5% in March, likely improving as well on the back of easing coronavirus-related restrictions.”

“Leading indicators, such as the PMI reports and the weekly Initial Jobless Claims data, point to yet another impressive NFP reading in April, which shouldn’t come as a big surprise. Nevertheless, investors could lean toward the greenback if the data confirms the view that the US economy is likely to outperform its major rivals in the remainder of the year. On the other hand, a disappointing print is likely to limit the USD’s gains.”