DislikedHi Eco. I'm kinda barging in to ask a quick question. It may have already come up. If so, sorry. Question is, this coming NFP happens to be at the end of a slow groggy week that started with CAD holiday and then USA holiday. Also, it is summer time and a lot of people are probably off doing fun things. So, the market reaction to whatever the report says is probably going to be kind of thin? You think? And comes Monday, sober heads at work, are they going to just validate the Friday's direction or should we expect a more full bodied reaction that...Ignored
Morning
The industry tends to take its holiday at the end of July and into August so this release should be fine to trade. This employment report is going to be a bit more interesting than previous ones because the Fed have turned dovish and likely to cut this month. What the markets are now looking at is not July's cut but any evidence that could translate iinto additional cuts down the road. A miss in wages and jobs will add fuel to expectations of additional cuts but it will be not as aggressive as it would if this were the 3rd report that misses. Thats because the Fed average over 3 to 6 months and don't focus on a single report. Conversely a beat on jobs and wages will potentially soften expectations of additional cuts and should leave the dollar bid.