FXstreet

The unemployment rate and average hourly earnings are the key metrics to watch. It is likely that the underemployment rate could fall to 7.1% and this could push the dollar index higher triggering a sell-off for emerging markets.



In simple words, at 185K the expectations for the U.S. NFP number are sky high. Speculators are even hoping for a number above 200K. But, the two most important numbers that traders will be looking at are the average hourly earnings number and the underemployment number. The last one is an indicator that represents the people who have given up looking for a job, in other words, slack in the labour market. Jerome Powell has already declared the special attention he pays to the average hourly earnings number. The expectation for the average hourly earnings m/m is 0.5%, while the previous reading was at 0.4%. The underemployment number printed a reading of 7.4% and if this number comes at 7.1%, it will be immensely positive for the dollar.

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