| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:45 | Switzerland | Unemployment Rate (non s.a.) | December | 2.6% | 2.6% | 2.8% |
| 07:45 | France | Industrial Production, m/m | November | -0.3% | 0% | 0.2% |
| 07:45 | France | Consumer spending | November | -0.3% | 0.2% | 0.3% |
USD traded flat against other major currencies in the European session on Friday as investors prepared for the release of crucial U.S. labour market data later in the day, which could impact near-term expectations of the Federal Reserve reducing interest rates.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, inched up 0.01% from the previous close to 109.17.
The U.S. December employment situation report will be released at 13:00 GMT. Economists forecast the U.S. economy likely added around 160,000 new jobs last month, down from 227,000 in November, while the unemployment rate remained unchanged at 4.2%, and wage growth held steady at 4.0% YoY.
Hotter-than-anticipated jobs market numbers, particularly with respect to pay growth, could stoke inflation concerns, prompting investors to recalibrate their bets on the path of Federal Reserve interest rate cuts in 2025.
Markets trimmed their forecasts of the pace of the Fed’s policy easing earlier this week after data pointed to a robust economic stance and sticky inflation in the U.S. According to the CME Group's FedWatch, markets are currently pricing in only one 25-basis-point rate cut between now and the end of the summer, with that one likely coming either in June or July.