• The US Nonfarm Payrolls are foreseen at 185K in January, down from December’s 223K.
• The US Dollar’s fate hinges on the Average Hourly Earnings, which unexpectedly declined to 4.6% in December.
• The Unemployment Rate published by the Bureau of Labor Statistics is seen a tad higher at 3.6% in January.

The Nonfarm Payrolls (NFP) data will be released by the Bureau of Labor Statistics (BLS) this Friday at 13.30 GMT. The last NFP release is set to show that the United States economy created 185K jobs in January. However, a downside surprise cannot be ruled out after the US ADP private sector payrolls dropped sharply to 106K in January, missing expectations of 178K and against the previous reading of 253K. Weak US employment data could exacerbate the pain in the US Dollar (USD).

The US Dollar has been meandering near 10-month lows against its major rivals, as markets read the latest comments by Federal Reserve (Fed) Chairman Jerome Powell as largely dovish.

Powell referred repeatedly during a news conference to the "disinflationary" process that now appeared to be underway, which markets view as the Fed could be turning a corner on its tightening cycle. While that justifies a weaker USD, the move may have gone too far. This should imply the beckoning of an upside correction in the US Dollar should the Nonfarm Payrolls headline number deliver a positive surprise.