As Friday’s trading session gets underway in Europe, the US non-farm payrolls report for August, released at 13.30, will be on the mind of traders and dealers alike. Even though the report is due to show a slower pace of growth from July’s stellar numbers, there is still expected to be a healthy increase.
The importance of today’s data is whether or not it will spur the Fed to announce the beginning of tapering of asset purchases at their meeting later this month. Expectations are for a print of 750K jobs with the unemployment rate falling to 5.2%.
From the Fed’s perspective, anything above the 500,000 mark should provide a clear indicator that they have fulfilled their ‘substantial progress’ objective set earlier this year. Anything lower than 300,000 and this may be soft enough to convince markets Powell and co. will seek additional time. The greenback will rally on the former and sell-off on the latter. Buckle up!
Enjoy the weekend.
Written by Viv Savani. 8:11am, September 3rd 2021
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.