US NFP: Headline expectation is for a decent 180K - Rabobank

Sandeep Kanihama FXStreet Contributor

Michael Every, Head of Financial Markets Research at Rabobank, suggests that it’s blindingly obvious what market attention will be focused on today as the headline expectation for the US NFP is a decent 180K, down from a blistering 255K in July.

Key Quotes

“However, a word of warning. As Bloomberg has recently noted, August tends to see downside surprises to expectations in this key series. Hence we might end up with another ‘oops!’ moment, just as we did back in early June with the May jobs data, which subsequently pushed the Fed off the hiking trail (if they were ever really on it) in the summer.

The importance of that US employment print today can’t be overstated. After all, yesterday saw a collapse in the US manufacturing PMI back to 49.4, dragging the Dollar index down 0.6% with it. Elsewhere, 10-year US Treasuries tumbled back to 1.57%, having peeped their heads over 1.60% for the first time since early August, while equities closed either slightly down or unchanged.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.