Big Day Alert! It's NFP Time: Euro, Gold, and the Dollar on the Move!

Hello, everyone! Today’s the big day—Non-Farm Payrolls (NFP) day! We’ve got a lot going on in the markets, especially for the U.S. dollar. The euro has already pulled back since yesterday, so the big question is: does that signal a weaker NFP report today? Or maybe the big players are just boosting prices to set up for a short later? That’s exactly what I’ll be diving into in today’s market rundown!

So, what are the expectations for this month’s NFP? Forecasts are showing a drop to 108,000 from last month’s 254,000. That’s quite a tumble—around 144,000 jobs—and it's not looking too promising. Unemployment is estimated to be around 4.1%, creeping up slightly within the Federal Reserve’s target band of 4.0% to 4.2%. Also, average hourly earnings are expected to dip slightly, from 0.4% to 0.3%. With some softer data rolling out from the U.S., this could mean we’re in for some market excitement!  

Meanwhile, Europe is showing strength: inflation data has inched up a bit across Spain, Germany, and the Eurozone, with a slightly higher-than-expected core CPI. This shift suggests we’re in a bit of a role reversal—where U.S. economic data looks softer while Europe’s numbers seem to gain momentum.

Given the rocky October for the U.S. (hurricanes, shutdowns, and a weaker labor landscape), my outlook is for a higher-than-expected unemployment rate and maybe even a lower-than-forecast hourly earnings number. If that’s the case, I’m looking for volatility on EUR/USD, GBP/USD, and even gold, which pulled back slightly after its recent highs but could be on the way up again.

For anyone trading the NFP today, I’ve put together a full guide on this strategy in my educational playlist. If you haven’t yet checked it out, now’s the perfect time to see how to use these moves in your trades. The playlist link is down below, so take a look and let me know your thoughts after the market moves settle.

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