Will Nonfarm Payrolls give the dollar a boost or leave it hanging

Will Nonfarm Payrolls give the dollar a boost or leave it hanging?

The U.S. Nonfarm Payrolls are expected to be released by the Bureau of Labor Statistics on Friday, which is expected at 229,000 new jobs, less than the 254,000 that September reported.  It is the strong barometers of employment opportunities that could be used as a sign of labor conditions within the United States.

This could be the slowest job growth since last fall, and this could be a sign of cooling labor markets, which might affect the future interest rate decisions of the Federal Reserve. Payrolls lower than expected could undermine investor confidence that the U.S. economy has gained strength, sending the U.S. dollar down. If jobs are more than initially forecasted, this supports the view that the labor market is very resilient, which would further improve the greenback's price. As the Nonfarm Payrolls significantly affect the monetary policies and the attitude of people toward the markets, one can expect much attention during the release of this report with a watchful eye on anything that may push economic forecasts around.

US Manufacturing PMI drops Friday

The Institute for Supply Management will publish its Purchasing Managers Index for U.S. Manufacturing on Friday. The index is based on a survey of more than 400 companies and throws light on business conditions prevailing in the U.S. manufacturing sector. The factors included are employment, production, and new orders.

f the PMI is rising as expected, this could be an indication of a small recovery in manufacturing activity, but this is still below the 50 mark that separates contraction from expansion. A high reading may reflect stabilization within the sector and may increase investor sentiment towards the US dollar. If the index does not rise as expected, then concerns may arise about continuing weaknesses in the manufacturing sector, which can weigh on economic forecasts. Market participants will keenly observe the release since it might influence opinions regarding the general U.S. economy.