US job growth is slowing and the unemployment rate has risen steadily from 3.5% last July to 4.1% in June. Inflation remains around 2.6% according to the Fed’s preferred measure of consumer expenditures, which policymakers still consider elevated, but it is approaching a point where things could change.<\/p>
\u00a0<\/p>
The labor market has returned to the \u201ctight but not overheated\u201d conditions seen before the COVID-19 pandemic threw the US economy into turmoil, the Federal Reserve said on Friday in a report to Congress that documented the steady emergence of more normal conditions in the aftermath of the health crisis.<\/p>
\u00a0<\/p>
The job market, meanwhile, \u201ccontinued to rebalance over the first half of this year,\u201d the report noted. \u201cLabor demand has eased, as job openings have declined in many sectors of the economy, and labor supply has continued to increase, supported by a strong pace of immigration.\u201d<\/p>
\u00a0<\/p>
\u201cThe balance between labor demand and supply appears similar to that in the period immediately before the pandemic, when the labor market was relatively tight but not overheated. Nominal wage growth continued to slow,\u201d the report said.<\/p>
\u00a0<\/p>
The labor market report comes ahead of two days of testimony by Fed Chair Jerome Powell, set for Tuesday and Wednesday next week, that is likely to focus on the Fed\u2019s plans for monetary policy heading into a sensitive election season.<\/p>
\u00a0<\/p>
New inflation data will be released on Thursday. If price pressures continue easing it may prompt Fed officials to open the door to interest-rate cuts as soon as September, which would provide a boost to EURUSD.<\/p>
\u00a0<\/p>
The final recommendation<\/strong> is to buy EURUSD if the US CPI figures do not exceed expectations.<\/p> \u00a0<\/p> Take profit at the level of 1.0900. Stop loss may be set at 1.0780.<\/p> \u00a0<\/p> The value of possible loss should not exceed 2% of your deposit funds.<\/p> \u00a0<\/p>","protected":false},"excerpt":{"rendered":"Market analysis by financial analysts and experienced traders. Forecast for EURUSD.","protected":false},"author":1,"featured_media":3645,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-3654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-forecasts-en"],"translation":{"provider":"WPGlobus","version":"2.12.2","language":"en","enabled_languages":["ru","en"],"languages":{"ru":{"title":true,"content":true,"excerpt":true},"en":{"title":false,"content":false,"excerpt":false}}},"yoast_head":"\r\n