NFP Preview: The report may take its toll on sentiment instead of on the greenback

The US will publish this Friday the employment figures for April, a full month of quarantine in several US states. USD direction will depend on how the figures affect sentiment, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“The country is expected to have lost 22 million jobs throughout the month, while the unemployment rate is seen jumping to 14% from 4.4%. Nevertheless, there is speculation that such a rate could be closer to 20%.”

“The report may take its toll on sentiment instead of on the greenback. And the dollar may react in consequence. An upbeat market mood will keep the American currency subdued, while plummeting equities may push it higher.”

“The case of a rallying EUR is quite limited. The Aussie may have more chances of advancing while the USD/CAD will be noisy, as Canada will also release its monthly employment figures.”