ING analysts: The non-farm payroll data released tonight may lean towards weakness, which could exacerbate volatility in the cryptocurrency market

ChainCatcher news, according to CoinDesk, as the market awaits the U.S. non-farm payroll report on Friday, analysts at ING (International Netherlands Group) warn that the data may lean towards weakness, which could exacerbate volatility in financial markets, including cryptocurrencies. Economists surveyed by The Wall Street Journal expect that the data, to be released at 20:30 Beijing time, will show that the U.S. added 185,000 jobs in July, down from 206,000 in June; the unemployment rate remains at 4.1%, unchanged from June, while the annual growth rate of hourly wages may slow to 3.7%. ING analysts explained in a report to clients on Friday, "Evidence from the employment components of the ISM and NFIB surveys suggests that the risks are tilted towards a decline in employment," which explains their bearish view on the dollar.

A weak report would undoubtedly strengthen expectations for interest rate cuts by the Federal Reserve this year, diminishing the dollar's appeal. Although Federal Reserve Chairman Jerome Powell ruled out the possibility of significant rate cuts on Wednesday, traders are already anticipating that the Fed will begin cutting rates in September and increase easing measures. ING stated that once the safe-haven demand brought about by ongoing stock market turbulence and geopolitical tensions diminishes, macroeconomic forces may drive the dollar lower.