Will the U.S. jobs report affect European currencies?

Will the U.S. jobs report affect European currencies?

03.09.2021

Yesterday, U.S. stock prices rose, creating a risk-on market characterized by higher stock prices, lower interest rates, and higher oil prices. The Nasdaq and S&P 500 both hit new record highs, albeit by a narrow margin. The S&P 500 closed at 4,536, up 12 points from the previous day.The number of new U.S. unemployment insurance claims released yesterday came in at 340,000, falling short of the market forecast of 345,000 and marking the lowest level since March 2020.

In the foreign exchange market, the US dollar’s upward momentum has weakened due to the decline in the yield on 10-year US Treasuries, and the EUR/USD pair has risen, finding support at the 20-period moving average (MA) on the hourly chart. The EUR/USD is currently trading around 1.187. However, on the daily chart, it has just reached the 200-period exponential moving average (EMA), and we need to closely monitor whether the rally will continue up to the previous high of 1.190.

Today’s schedule includes Turkey’s Consumer Price Index and Producer Price Index at 4:00 PM, the UK’s Services PMI (final reading) at 5:30 PM, Eurozone retail sales at 6:00 PM, the U.S. employment report and Canada’s second-quarter labor productivity index at 9:30 PM, the U.S. Services PMI (final reading) at 10:45 PM,and at 11:00 PM, the U.S. ISM Non-Manufacturing Index. Nonfarm payrolls in today’s U.S. employment report are expected to come in at 750,000. I intend to closely monitor how much the actual result deviates from this figure.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed