Today’s Main Focus: NonFarm Payrolls – What to Expect?

The main focus today will be the US jobs report for July, which will provide guidance on how the US economy is doing.

Economists expected NonFarm Payrolls to register 250,000, a slowdown from June’s 372,000 job gain. This would mark the 19th straight month of expansion, but would be the smallest increase in that period.

Data released on Thursday showed that the number of Americans filing new claims for jobless benefits rose last week, suggesting some softening in the labor market, and the jobs report will be scrutinized for potential confirmation. .

Cooling job growth could ease pressure on the Fed to deliver a third straight 75 basis point rate hike at its next meeting in September.

However, a number of senior Fed officials have taken a hawkish tone in recent days, indicating that the central bank is still firmly focused on taming inflation and further rate hikes are on the way.

NFP has beaten forecasts in five of the six reports so far this year. That will lead investors to forecast more than 250,000 jobs, casting doubt on forecasts that have turned out to be pessimistic.