Markets are waiting for the release of US jobs report on Friday which is expected to give fresh signals about the strength of the US economy as well as direction signal for the US dollar and its major counterparts.

According to the forecast for US non-farm payrolls, 175K new jobs will be added in June, well above 138K in May, but US jobs data were showing strong oscillations during past few months.

After 232K new jobs were added in February, report for March disappointed by only 50K new jobs created during the month.

April’s release was showed 211K new jobs added and beat the forecast of 193K.

Hiring slowed again in May, showing 138K new jobs, well below forecast at 185K.

US Unemployment rate is expected to remain unchanged at multi-year low at 4.3% in June, being in a steady descend from 4.8% in January 2017.

Release of ADP private sector jobs data on Thursday disappointed markets on 158K new jobs added in private sector in June, well below forecasted 184K and downward revised May’s figure at 230K.

US ADP report is usually used as an indication for more important Non-Farm Payrolls report, despite correlation between two indicators is rather loose.

ADP reports hit levels above 200K six times in last seven months and exceeded 250K in three months while NFP surpassed 200K threshold only three times but never reached 250K.

This suggests that ADP reports were inflated and exaggerated job growth while NFP underestimated the recent trend and Thursday’s miss in ADP report signals upside risk to the Non-Farm payrolls report.

The dollar was lower after downbeat ADP data on Thursday and may react positively on release of NFP at forecasted levels or above expectations, however, release of average earnings and unemployment rate needs to be closely watched.

Average earnings are forecasted at 0.3% in June, above 0.2% in May, when report missed forecast at 0.3%. Average earnings did not show stronger oscillations in 2017, ranging between low at

0.1% in April and the high of past six months at 0.3%, posted in March.

US jobs data are due on Friday at 12:30 GMT.