When is the US jobs report and how could it affect EUR/USD?

US jobs report overview

Friday's US economic docket highlights the release of keenly watched US monthly jobs report, popularly known as NFP. The report is scheduled to be released at 1230GMT and is expected to show that the US economy added 191K new jobs during the month of August, up from previous month's disappointing reading of 157K.

Meanwhile, the unemployment rate is seen ticking lower to 3.8% from 3.9% in August, while average hourly earnings, which have gained more traction in the recent past, is seen rising 2.7% y/y.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed, the reaction to the headline NFP print, in case of a relative deviation of -1.23 or +0.98, is likely to be in the range of 54-52 pips during the first 15-minutes and could stretch to 105-90 pips in the subsequent 4-hours.
How could the data affect EUR/USD?

Yohay Elam, FXStreet's own Analyst explains: “1.1660 was a peak on Wednesday. Next up is1.1695 last seen on Friday and further to the upside 1.1735 was the high point in late August.”

“1.1630 held the pair down early in the week. The next awaits at 1.1580 after serving as support late in August. 1.1530 is already a substantial level after halting the pair's decline twice: a double bottom,” he adds further.

Key Notes

   •  Nonfarm Payrolls preview: too much trouble somewhere else

   •  US: August NFP consensus is for a 191k – Deutsche Bank

   •  NFP Preview: EUR/USD is Bullish Above 1.1655

About the US monthly jobs report

The nonfarm payrolls released by the US Department of Labor presents the number of new jobs created during the previous month, in all non-agricultural business. The monthly changes in payrolls can be extremely volatile, due to its high relation with economic policy decisions made by the Central Bank. The number is also subject to strong reviews in the upcoming months, and those reviews also tend to trigger volatility in the forex board. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish), although previous months reviews and the unemployment rate are as relevant as the headline figure, and therefore market's reaction depends on how the market assets them all.