The non-farm payrolls report is widely seen as the most important figure of the month. Economists are expecting the number of people on the payrolls to increase by 200,000, and for the unemployment rate to drop from 7.6% to 7.5%.
On Wednesday the US Federal Reserve stated that the stimulus package will remain in place until the economy picks up; this is keeping the US dollar under pressure. If the unemployment rate drops by more-than-expected we could see traders sell the euro against the US dollar, as it could be an indicator that the Fed will be triggered to trim their bond-buying programme.
It has been a quiet morning in terms of economic data. The eurozone released produced price index (PPI), which came below expectations as analysts were expecting an increase of 0.1%. However, prices remained flat for the month of June, which indicates that demand is weak.
It is not unusual for trading volumes and market volatility to be low ahead of a big announcement, so we could see a large move in the currency pair after 1.30pm (London time).