U.S. Non-Farm Payrolls: Markets Target 110K Jobs as Key Test for Fed Rate Cut Outlook

The upcoming U.S. non-farm payrolls (NFP) report is being viewed as the last indicator of the week for financial markets, with consensus estimates calling for the addition of 110,000 jobs in July, according to Jinshi Data.

The release follows PCE inflation data earlier this week, which largely aligned with the Federal Reserve's outlook on price pressures. However, analysts warn that if job growth exceeds expectations, it could diminish or even erase hopes for a rate cut in September.

The stakes are high: the NFP report is likely to influence the trajectory of the U.S. dollar and impact stocks, bonds, and cryptocurrencies, as traders recalibrate expectations about Fed policy.

Markets will be closely watching not only the headline jobs figure but also wage growth and unemployment data, which could provide additional signals on whether the Fed maintains its current stance or considers easing later in the year.#NFP