According to BlockBeats, the July employment report, set to be released at 8:30 PM UTC+8 on Friday, is expected to show an addition of 110,000 jobs, a significant decrease from June's 147,000. The unemployment rate is projected to slightly increase from 4.1% to 4.2%, while average hourly earnings are anticipated to rise by 0.3%, up from June's 0.2%. If these predictions hold true, it would reinforce the notion of a slowing job market, although it may not necessarily prompt a response from the Federal Reserve.
Earlier this week, during a monetary policy meeting, Federal Reserve Chair Jerome Powell did not provide guidance on the September interest rate decision, noting that much data is yet to be released. The July non-farm payroll report on Friday will be a crucial piece in shaping expectations for a potential rate cut by the Federal Reserve in September.
Analysts suggest that if the non-farm employment figures fall below 100,000 and the unemployment rate rises, it could indicate a weakening job market, dampening the Federal Reserve's renewed hawkish stance and putting pressure on the U.S. dollar. This scenario could benefit gold prices.
Conversely, if the non-farm employment data unexpectedly exceeds 150,000, the dollar's strength may persist, as robust U.S. employment figures could rule out the possibility of two rate cuts by the Federal Reserve this year.