Non Farm Payroll Alert – Dollar scales seven-week highs before U.S. jobs data.
This article is originally referred from Yadix News.
Non Farm Payroll – Oct 06, 12:30 GMT: The usually high impact Non Farm Payroll (NFP) report will be released on Friday. This report is considered a key US economy report and can trigger sharp market movements.
Asian stocks made gains on Friday and the US dollar reached a seven-week high as it takes advantage of economic optimism ahead of the Non Farm Payrolls later today. The markets are reacting to the first step where Congress passed the budget details, meaning tax reform is a step closer.
Data from the U.S has been impressive this week and the focus is now turned to the Payroll report today with economists expecting 90,000 new U.S. jobs created in September, down from 156,000 in August, this is due to the Hurricane hits last month which affected over 10 percent of the population and caused over $100 billion in damages. If the results are stronger, the chances of a Fed interest rates increase in December would be more likely; however the Fed currently takes a cautious stance.
Fed member George said this week that a raise U.S. interest rates is needed to keep the economy on track to full employment and the Fed’s 2-percent inflation goal, with the warning of waiting too long for another rate hike may force the Fed to raise rates aggressively later which may send the economy into recession, or lead to financial imbalances if investors respond to low rates by entering even riskier trades.
Overall, today and the coming months will be very interesting for the U.S economy. Traders should be aware that any significant changes in expected data or surprises can cause market volatility and excellent trading opportunities, client’s are reminded to have enough equity available to trade the Nonfarm Payrolls safely.
Original Source: Yadix News