The U.S Non Farm Payrolls will be released Friday, 5th of October 2018 12:30 GMT and is a key economic indicator that can cause volatility in the markets.
What to Expect this Month: There is an expectation that the Nonfarm Payrolls report will show an employment increase by 180k in September. If the expectations are accurate it means a slight deceleration from the 201k in August and just below the six-month average of 192k.
The forecast is in-line with the economy growth, around 3% and above the pace of employment growth required to adsorb new labor market entrants. The readings throughout the month have displayed healthy statistics with low initial jobless claims and high regional business surveys.
The Nonfarm Payrolls report is expected to show that the US economy added 191,000 new jobs in August. The unemployment rate is expected to fall to 3.8% from the previous 3.95%, and wages growth is seen rising 0.2% Month-on-Month and 2.7% Year-on-Year.
Weekly unemployment claims reduced in the last week of the August, falling to 203K, the lowest level since early December 1969, however the ADP survey showed that the private sector added only 163,000 jobs in August, well below the previous months figure at 217K and the expected 190K, which is the lowest level since October last year.
The markets are now focusing on when US rates will reach a normal level, and subsequently, when the Fed will pause its tightening cycle. Investors will not be too concerned over fewer new jobs, as long as wages don't reach a slower pace. The Fed is determinate to keep any rate hikes gradual as growth in jobs is strong and inflation is under control. Further increases in interest rates can be expected if the growth continues and there are no surprises in the US economy.
Opportunities around the NFP Reports: Regardless of the results of the Non Farm Payrolls, the markets always experience moves immediately after the release which offer traders excellent short-term trading opportunities. Positive or negative reports will affect market sentiment which can create new trends and trading opportunities.
Monitor the markets for better trading advantages: https://www.yadix.com/forex-trading-community/economic-calendar/
Stocks fell worldwide and European assets were sold off on today following anti-euro comments from the Italian lawmaker Claudio Borghi.
Claudio Borghi, who leads the economic policy of Italy’s ruling party, said in an interview "I am truly convinced that Italy would solve most of its problems if it had its own currency,". His comments pushed the yield on the 10-year Italian bond to rise to 3.40 percent at about 8 a.m. London time, which is it's highest level since March 2014. This follows comments in May which caused a sell-off.
As a result, Italy's main index also fell around 1.5 percent and shares in Italian banks went into the red, with Banco BPM falling 5 percent, UniCredit down 3.2 percent and Intesa Sanpaolo fell 2.7 percent. There are also concerns that increased public spending will disrupt public debt reduction of public debt which amounts to about 2.3 trillion euros ($2.6 trillion).
Leading economists have commented that they do not expect systemic implications for the global economy, although risks have risen, European risky assets remain vulnerable and there is potential for a negative spill over to the Euro area given the high trade exposure to Italy. The euro extended losses to fall 0.6 percent to its lowest since August 21st and is trading at trading at $1.150.
The aftermath of today's events have resulted in differing opinions with accusations towards the EU of "creating terrorism on the markets" whilst others are urging the Italian government to " tell the truth to the Italians, that there is more public expenditure". As it stands the markets must wait until October 15th where Italy will finalise its 2019 budget plan and submit it to the European Commission for analysis. The markets will be eagerly awaiting the budget which is likely to have heavy implications on the markets direction.
Best regards,
David Bergman
Account Manager
Yadix Forex Broker
Telephone: +44(0) 20 3239 6117
E-mail: support@yadix.com
Skype: yadix.forex
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Dear Traders,
Please be reminded that now its the time to claim your September 2018 monthly rebates: 1 pip per lot on Rebate Account or 0.3 pip per lot on Classic Account.
To claim your rebates simply send us an email in between the 1st and 5th of each month. Please include your MT4 account number and the number of lots that you have traded.
*Learn more on the new Cash Backs Program: https://www.yadix.com/forex-trading-community/promotions/Instant-Rebate-Program/
I am looking forward to hearing from you.
Best regards,
David Bergman
Account Manager
Yadix Forex Broker
Telephone: +44(0) 20 3239 6117
E-mail: support@yadix.com
Skype: yadix.forex
