Nonfarm Payrolls figures for August come after weak data raised recession fears, and as the Fed contemplates a the size of its first rate cut. Gold, stocks and the US Dollar are set for a wild ride. Live coverage.
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Why Nonfarm Payrolls eyed with fear and hope ahead of the rate cut
Federal Reserve Chair Jerome Powell said he will do everything he can to support the labor market – a big shift from the focus on inflation. While markets know the Fed will cut rates later this month, the size of the cut is unknown.
Nonfarm Payrolls have returned to being the No. 1 market mover, and there are fears they could be weak. While the economy calendar points to an increase of 160,000 jobs in August, a weak report from ADP, America's largest payrolls provider, implies a softer outcome. Investors will also see the unemployment rate, which rose to 4.3% in July, as an indicator of the health of the world's largest economy.
The data comes out at the end of a short and busy week in the US, the "back to school" period after Labor Day. Trading liquidity has risen substantially.
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