Payroll data is among the indicators that generally trigger a significant market reaction. Still, this time, with all eyes on the inflation front, only a dismal print could hurt the US Dollar in a meaningful way.<\/p>\n
What to expect from the Nonfarm Payrolls report?<\/p>\n
Investors expect NFP to rise by 110K following three consecutive months of surprisingly strong increases. The Unemployment Rate is seen holding steady at 4.3%, while the annual wage inflation, as measured by the change in the Average Hourly Earnings (AHE), is projected to edge higher to 3.5% from 3.4% in May.<\/p>\n
TD Securities analysts note that they expect NFP to rise at a softer pace than what markets expect.<\/p>\n
\u201cWe expect June payrolls to moderate to 80k (55k private, 25k government) after strong early\u20112026 gains. Job growth broadened beyond healthcare, led by trade\/transport and leisure, but should cool this month. Local governments may stay firm on World Cup effects. We see the Unemployment Rate edging down to 4.2% as participation dips. AHE likely moderated to 0.2% m\/m (3.5% y\/y),\u201d they add.<\/p>\n
The Automatic Data Processing (ADP) reported on Wednesday that private sector employment in the US grew by 98K in June. This print followed the 122K increase recorded in May and came in below the market expectation of 113K.<\/p>\n
Similarly, National Bank of Canada Senior Economist Jocelyn Paquet forecasts a 90K increase in NFP and explain:<\/p>\n
\u201cBased on the weekly data released by ADP and previously published \u201csoft\u201d employment indicators, such as S&P Global’s flash composite PMI, job creation likely remained fairly robust during the month, although not as robust as what we had been accustomed to between February and May. Layoffs, for their part, may have increased slightly, judging by the rise in initial jobless claims<\/a> recorded between the May and June survey periods. These two factors combined should, in our view, result in an increase of 90K in nonfarm payrolls.\u201d\u00a0<\/p>\n Economic Indicator<\/p>\n Unemployment Rate<\/p>\n The Unemployment Rate, released by the US Bureau of Labor Statistics<\/a> (BLS), is the percentage of the total civilian labor force that is not in paid employment but is actively seeking employment. The rate is usually higher in recessionary economies compared to economies that are growing. Generally, a decrease in the Unemployment Rate is seen as bullish for the US Dollar (USD), while an increase is seen as bearish. That said, the number by itself usually can’t determine the direction of the next market move, as this will also depend on the headline Nonfarm Payroll reading, and the other data in the BLS report.<\/p>\n <\/p>\n Read more. \n Next release: \n Frequency: \n Consensus: \n Previous: \n Source: <\/a>\n <\/p>\n How will the US May Nonfarm Payrolls affect EUR\/USD?<\/p>\n Although crude Oil prices came down to levels seen since pre-US-Iran conflict, investors remain concerned over global inflation remaining sticky, mainly due to heightened costs of consumer electronics via AI-driven hardware demand. As a result, the US Dollar (USD) has been outperforming its major rivals, supported by growing expectations for a tighter Fed policy.<\/p>\n Hammack flags broad inflation, keeps rate hike option alive<\/p>\n In an interview with CNBC on Tuesday, Cleveland Fed President Beth Hammack delivered a moderately hawkish message with the FXS Speechtracker score at 6.4\/10.\u00a0<\/p>\n This is slightly softer relative to the historical average of 7\/10 but still signals a tightening bias. By stressing that the job market is \u201cright around full employment\u201d and that growth \u201clooks good,\u201d while warning that \u201cinflation is still too high\u201d and that rate hikes may need to be considered, the speech underscores a willingness to tighten policy despite concerns about the broader economy.\u00a0<\/p>\n According to the CME FedWatch Tool, markets are currently pricing in about a 34% probability of the Fed raising the interest rate by 25 basis points (bps) as early as July, compared to a 6% chance seen in early June. Moreover, the probability of at least two rate increases by the end of 2026 now sits slightly above 40%.<\/p>\n Another positive surprise of 130K or higher in the headline NFP could feed into July rate hike projections and fuel another leg higher in the USD. In this scenario, EUR\/USD<\/a> could remain under bearish pressure and extend its downtrend in the near term.\u00a0<\/p>\n On the other hand, a significantly disappointing print below 70K could trigger an upward correction in the pair. However, a steady bullish reversal is unlikely to materialize unless Fed policymakers shift their tone and put more emphasis on labor market conditions rather than the inflation outlook.\u00a0<\/p>\n Given three consecutive months of very strong prints, however, a single NFP<\/a> miss is likely to be overlooked, keeping any potential rebound in EUR\/USD short-lived.<\/p>\n
\n <\/a><\/p>\n
\n Thu Jul 02, 2026 12:30\n <\/p>\n
\n Monthly\n <\/p>\n
\n 4.3%\n <\/p>\n
\n 4.3%\n <\/p>\n
\n <\/p>\n![\"Source:](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/image-1782914999499.png\")
Source: CME Group<\/p>\n
![\"EUR\/USD](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/image-1782915020158.png\")
EUR\/USD daily chart<\/p>\n