When is the US monthly jobs report (NFP) and how could it affect EUR/USD?

US monthly jobs report overview

Thursday's US economic docket highlights the release of the closely watched US monthly jobs data, popularly known as nonfarm payrolls (NFP). The report is scheduled to be released at 12:30GMT and the headline NFP is expected to show that the US economy created another 3 million jobs in June. This comes on the back of May's 2.509 million gains and will offer further evidence that the coronavirus-led recession was probably over. Meanwhile, the unemployment rate is anticipated to have edged lower to 12.3% from 13.3% previous.

How could the data affect EUR/USD?

Given that the recent price action has been influenced by developments surrounding the coronavirus saga, the report is unlikely to be a major game-changer. Conversely, a surprisingly stronger reading should provide an additional boost to the already upbeat market mood, which might do little to provide any meaningful respite to the USD bulls.

Meanwhile, Yohay Elam, FXStreet's own Analyst provided important technical levels to trade the EUR/USD pair: "Initial resistance awaits at 1.1290, the weekly high, but the bigger prize is 1.1350 – a double-top touched in recent weeks. Further up, 1.1380 and 1.1420 await EUR/USD."

"Some support awaits at 1.1250, which is where the 50 SMA hits the price. It is followed by the uptrend support line, coming out at around 1.1220, and then by 1.1185, a weekly low. The next lines are 1.1165 and 1.1075," Yohay added further.

Key Notes

US Non-Farm Payrolls June Preview: The delicate art of prediction

EUR/USD Forecast: Non-Farm Payrolls to spark a rally? Fundamentals, technicals improving, 1.1350 eyed

EUR/USD Price Analysis: Scope for further gains to 1.1350

About the US monthly jobs report

The nonfarm payrolls released by the US Department of Labor presents the number of new jobs created during the previous month, in all non-agricultural business. The monthly changes in payrolls can be extremely volatile, due to its high relation with economic policy decisions made by the Central Bank. The number is also subject to strong reviews in the upcoming months, and those reviews also tend to trigger volatility in the forex board. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish), although previous months reviews and the unemployment rate are as relevant as the headline figure,