Job growth expectations aren’t too high and a convincing beat above them might send currency speculators scrambling. Here’s what you should know.

• The EURUSD pair was floating steadily under the $1.03 handle with stateside traders and investors coming back from their off-day in honor of the passing of the 39th US President Jimmy Carter. Volumes were still low and volatility wasn’t even a thing as forex markets were getting caught up on the latest and preparing for what’s ahead. And some big things are ahead, namely the nonfarm payrolls report for December.
• A notorious market-moving event, the nonfarm payrolls are a reliable indicator of the health of the US economy. For December, analysts are eyeballing new jobs created to the tune of 154,000, a lower reading than November’s 227,000 hires. Prepare for a volatility rush later today as forex markets are generally highly sensitive to the jobs reports, especially if the figure is off by a lot from the projected estimates.
• In this context, the euro remains in languishing mode against the stronger dollar. The euro-dollar pair is on its fourth day of consecutive declines, having erased about 1.4%, or roughly 150 pips, from its valuation. Prospects for the euro aren’t too bright either — a continuation of the European Central Bank’s rate-cutting cycle threatens to undermine the bullish case for the old continent’s currency, at least for the foreseeable future.