EUR/USD Trading Sideways, US Jobs Data Next
The euro continues to show steadiness versus US dollar. The euro/dollar pair is trading at 1.1375, down 0.01% on the day. The single currency had a strong start of the week, climbing above $1.14 level. Overall this week, the euro gained nearly 0.3% against the dollar. Eurozone will release employment change and revised GDP for the third quarter today.
Focus of the markets is on the US employment numbers. Nonfarm payrolls probably increased by 200.000 jobs last month, after surging 250.000 in October. The unemployment rate is forecast steady at near a 49-year low of 3.7%. Average hourly earnings are seen up 0.3% in November after gaining 0.2% in October.
A strong employment data could increase the probability of the Fed’s rate hikes in 2019. Fed policymakers are still widely expected to raise interest rates again at their December 18-19 meeting, but the market focus is on how many rate hikes will follow in 2019. Meanwhile, interest rate futures implied traders see no more than one rate increase from the Fed in 2019, compared with expectations a month earlier for possibly two rate hikes.