Tonight’s US unemployment print for June (aka the non-farm payrolls or NFP) will set the tone for the rest of the calendar month in terms of risk taking and give more guidance to what the Federal Reserve will do at its next interest rate meeting. Futures are indicating at least a 70bps or 0.7% rise as the number of hawkish Fed members continues to outweigh any laggard doves.
But tonight’s print might not be the nail in the coffin to get interest rates higher, faster as there are some signs it could surprise to the downside.
From CNN: