| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | Trade Balance (s.a.), bln | July | 20.4 | 21 | 16.8 |
| 06:00 | Germany | Industrial Production s.a. (MoM) | July | 1.7% | -0.3% | -2.4% |
| 06:45 | France | Industrial Production, m/m | July | 0.8% | -0.2% | -0.5% |
| 09:00 | Eurozone | GDP (QoQ) | Quarter II | 0.3% | 0.3% | 0.2% |
| 09:00 | Eurozone | GDP (YoY) | Quarter II | 0.5% | 0.6% | 0.6% |
USD declined against most of its major counterparts in the European session on Friday as investors eagerly awaited the U.S. employment situation report for August later in the day, which could shed more light on the health of the U.S. economy and determine the size of the Federal Reserve's first interest rate cut.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, fell 0.12% from the previous close to 100.99.
The much-anticipated U.S. jobs report is set to be released at 12:30 GMT. Economists expect it will show that non-farm payrolls rose by 160,000 last month, following a 114,000 advance in July, an employment rate decreased to 4.2% from 4.3% in July, and annual wage growth quickened to 3.7% from 3.6% in July.
If the U.S. labour market data come in softer than forecast, this will increase the bets that the size of the U.S. central bank’s potential rate cut in September, which would be the first move lower since 2020, is likely to be aggressive.
According to CME FedWatch, markets are now seeing a 59% chance of a quarter-point rate cut at the Fed’s September 17-18 policy meeting and a 41% probability of a half-point reduction. Overall, markets are pricing in at least 100 basis points of rate decreases by the Fed over the remainder of this year.