Live Coverage: Nonfarm Payrolls may intensify downturn fears, boost Gold, hit stocks
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UNLOCK OFFERNonfarm Payrolls data may show a weaker US labor market, raising rate cut expectations – but also exacerbating fears of a downturn. The all-important jobs report is set to rock Gold, stocks and all currencies.
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Why Nonfarm Payrolls may trigger a different reaction this time
The Federal Reserve conveyed a message that a "soft landing" is coming – a gradual return of the US economy to steady growth, without inflation. However, an increase in jobless claims and a downbeat ISM Manufacturing PMI already triggered fears of a downturn.
Investors need a "Goldilocks" Nonfarm Payrolls (NFP) report to be confident of a the soft landing scenario. That means another increase of around 200,000 jobs, and no increase in the Unemployment Rate beyond 4.1% reported last time.
Gold would benefit from a weak report, which would indicate rate cuts, while the US Dollar needs extreme data to rise. A super-strong NFP would increase rate hike expectations, buoying the Greenback, while a horrible outcome would trigger safe-haven flows toward the US Dollar. Only a balanced increase in jobs would hurt the currency.
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Nonfarm Payrolls data may show a weaker US labor market, raising rate cut expectations – but also exacerbating fears of a downturn. The all-important jobs report is set to rock Gold, stocks and all currencies.
Join XStreet Premium and ask analysts questions live, get instant actionable analysis, Gold alerts, signals and more.
Why Nonfarm Payrolls may trigger a different reaction this time
The Federal Reserve conveyed a message that a "soft landing" is coming – a gradual return of the US economy to steady growth, without inflation. However, an increase in jobless claims and a downbeat ISM Manufacturing PMI already triggered fears of a downturn.
Investors need a "Goldilocks" Nonfarm Payrolls (NFP) report to be confident of a the soft landing scenario. That means another increase of around 200,000 jobs, and no increase in the Unemployment Rate beyond 4.1% reported last time.
Gold would benefit from a weak report, which would indicate rate cuts, while the US Dollar needs extreme data to rise. A super-strong NFP would increase rate hike expectations, buoying the Greenback, while a horrible outcome would trigger safe-haven flows toward the US Dollar. Only a balanced increase in jobs would hurt the currency.
Live financial market coverage
FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and for Premium members, the abilty to ask our experts questions in real time.
FXStreet Premium
FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.
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