DailyFX | September 2 2010 3:41 EDT
The spotlight this week will be placed on the U.S. Nonfarm payrolls report for the month of August. Economists are expecting the labor market in the world’s largest economy to plunge 103,000 after payrolls took a free fall of 131,000 in July. With waning fiscal stimulus likely to impede the recovery in the U.S. in conjunction with tight credit conditions, and an uncertain economic outlook, a disappointing NFP report should not be ruled out. In turn, figures less than expected may lead traders to seek safety, which will lead to gains in the greenback and validate further EUR/USD losses. Market participants should not rule out whipsaw price action ahead of the report or a less than usual reaction to the release as some traders are offline going into the holiday weekend.
Read Full Story