Impact of US job figures on major Forex pairs and market sentiment
10.1.2026, 12:02:07 • 1 min read
The US Dollar strengthened following mixed labor market data, with Nonfarm Payrolls modestly rising and the unemployment rate slightly falling. This data influenced Forex pairs such as EUR/USD and GBP/USD, as well as the USD/CAD, amid varying economic signals. Understanding how labor data affects currency movements and market expectations is key for time-pressed retail traders.
In this article
US Labor Market Data and Dollar Strength
Explore how the recent US labor market data, including a modest increase in Nonfarm Payrolls and a slight dip in unemployment, contributed to the US Dollar’s appreciation. Discuss how mixed economic indicators can lead traders to adjust expectations regarding Federal Reserve interest rate changes, influencing the strength of the Greenback. Incorporate a general explanation of how labor market reports typically affect currency valuations through expectations about monetary policy.
Effects on Major Forex Pairs and Commodities
Analyze the impact of US labor data and broader economic signals on other currencies such as the Euro, Pound Sterling, and Canadian Dollar. Discuss the downward trend in EUR/USD and the decline in GBP/USD as traders reassessed Fed rate cut probabilities. Also, examine how oil price fluctuations and a weaker Canadian labor report pressured the USD/CAD pair. Include a brief overview of how commodity prices like gold can reflect and influence market sentiment amid economic uncertainty.
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Mixed US labor market data prompted a reassessment of Federal Reserve policy expectations, strengthening the US Dollar against several major currencies. Economic signals from the Eurozone and Canada added to the Forex market dynamics, while commodity prices showed resilience amid uncertainty. Such interlinked factors demonstrate how labor data and broader economic conditions jointly influence currency and commodity markets.
Sources
- Nonfarm Payrolls rise by 50,000 in December vs. 60,000 expected
- USD/CAD gains as US Dollar firms on labor data, Canadian Dollar pressured by Oil
- EUR/USD stays on the back foot after mixed US labour-market report
- GBP/USD slips below 1.3450 as Nonfarm Payrolls slash January Fed cut bets
Not investment advice. Published 10.1.2026, 12:02:07