U.S. Non-Farm Payrolls, Unemployment Rate and Average Hourly Earnings

The EUR/USD pair rose on Thursday as the European Central Bank (ECB) reduced its key rates by 25 basis points (bps). The policy decision has remained in line with market expectations. The ECB has also released the latest inflation projections, which indicate that the Eurozone's annual core inflation is at an average of 2.8% in 2024, 2.2% in 2025 and 2.0% in 2026.

ECB policymakers had already communicated their intention to cut key borrowing rates by 25 bps as they were sure that inflation is on course to return to the desired rate of 2%. Currently, financial markets expect the ECB to deliver two more rate cuts this year. In the press conference, ECB President Christine Lagarde commented that the central bank needs more data to confirm the disinflationary path and cautioned that price trends could be bumpy in the next few months.

US Nonfarm Payrolls (NFP) labour figures will dominate market focus on Friday, and median market forecasts are expecting May’s net US job additions to rise to 185K from the previous month’s 175K.

Gold prices rose on Thursday, coming close to key highs as bets on interest rate cuts by the Federal Reserve grew in anticipation of key nonfarm payrolls data due later in the day.

The yellow metal was set for weekly gains as a string of week U.S. economic readings pushed up expectations that the Fed will begin cutting rates in September. Interest rate cuts by the Bank of Canada and the European Central Bank also boosted optimism over looser monetary policy, which benefits metal markets.

Key nonfarm payrolls data, which is due later on Friday, and is set to offer more definitive cues on the labor sector and interest rates.

Oil prices rose on Thursday after the European Central Bank opted to cut interest rates, spurring hopes that the Fed will follow suit, and OPEC+ ministers reassured investors the latest oil output agreement could change depending on the market.

Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday that OPEC+ can pause or reverse production increases if it decides the market is not strong enough.

Russian Deputy Prime Minister Alexander Novak said the group might adjust the deal if necessary, adding that the post-meeting price drop was caused by misinterpretation of the agreement and "speculative factors".

At the close in NYSE, the US 30 added 0.20%, while the US 500 fell 0.10%, and the US Tech 100 rose by 1.88%.

Wall Street indexes remained close to record highs this week as soft economic readings in the lead-up to Friday all pushed up bets that the Federal Reserve will have more confidence to begin cutting interest rates soon.

Nonfarm payrolls data for May is due today and is expected to show payrolls increased slightly in the month, reflecting sustained strength in the labour market.

Among major aftermarket movers, meme stock Gamestop surged about 26% after rallying over 47% during the session. Influencer Keith Gill, or “RoaringKitty,” who had helped spark the memestock mania of 2021, said he will host a livestream on YouTube this Friday- his first in almost four years.