The U.S Non Farm Payrolls will be released Friday, 2nd of November 2018 12:30 GMT and is a key economic indicator that can cause volatility in the markets.
What to
Expect this Month:
The expectation for the Nonfarm Payrolls report is that 190K new jobs were added during October, which is a growth on September's figures. At the same time, it is expected that wages to have recorded their largest annual gain in 9-1/2 years.
Dollar strength was a major theme in the markets this week as the growing strength of the U.S. economy has boosted buying sentiment towards the currency. If expectations are accurate, this report could make the Fed rethink their approach towards monetary policy normalisation.
Average hourly earnings should rise 0.2 percent in October after an increase of 0.3 percent during September. This would boost the annual increase in the wages to 3.1 percent, the largest gain since April 2009, this is supported by other data published this week showing wages and salaries rising in the third quarter by the most since 2008.
This impressive data is a strong indication for the Fed, and may encourage further rate hikes in the near future or a more aggressive monetary policy in the December meetings. However the prospect of interest rates rising faster than anticipated has rocked the U.S. stock market recently, and a strong report on Friday could lead to selling on Wall Street. The S&P's 500 index dropped 6.9 percent in October, the biggest decline in seven years.
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.
The expectation for the Nonfarm Payrolls report is that 190K new jobs were added during October, which is a growth on September's figures. At the same time, it is expected that wages to have recorded their largest annual gain in 9-1/2 years.
Dollar strength was a major theme in the markets this week as the growing strength of the U.S. economy has boosted buying sentiment towards the currency. If expectations are accurate, this report could make the Fed rethink their approach towards monetary policy normalisation.
Average hourly earnings should rise 0.2 percent in October after an increase of 0.3 percent during September. This would boost the annual increase in the wages to 3.1 percent, the largest gain since April 2009, this is supported by other data published this week showing wages and salaries rising in the third quarter by the most since 2008.
This impressive data is a strong indication for the Fed, and may encourage further rate hikes in the near future or a more aggressive monetary policy in the December meetings. However the prospect of interest rates rising faster than anticipated has rocked the U.S. stock market recently, and a strong report on Friday could lead to selling on Wall Street. The S&P's 500 index dropped 6.9 percent in October, the biggest decline in seven years.
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.
Follow the market's events:https://www.yadix.com/forex-trading-community/economic-calendar/
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