Here is what you need to know on Friday, November 1:
The US Dollar (USD) stays resilient against its rivals early Friday, with the USD Index holding steady near 104.00 following a three-day slide. The US Bureau of Labor Statistics will publish the labor market report for October, which will include Nonfarm Payrolls, Unemployment Rate and wage inflation figures. Later in the day, the US economic calendar will also feature ISM Manufacturing PMI data for October.
US Dollar PRICE This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.72% | 0.52% | -0.49% | 0.31% | 0.62% | 0.19% | -0.46% | |
| EUR | 0.72% | 1.35% | 0.15% | 1.04% | 1.42% | 0.90% | 0.28% | |
| GBP | -0.52% | -1.35% | -0.35% | -0.20% | 0.13% | -0.36% | -0.82% | |
| JPY | 0.49% | -0.15% | 0.35% | 0.88% | 0.47% | -0.07% | -0.45% | |
| CAD | -0.31% | -1.04% | 0.20% | -0.88% | 0.25% | -0.21% | -0.76% | |
| AUD | -0.62% | -1.42% | -0.13% | -0.47% | -0.25% | -0.54% | -1.11% | |
| NZD | -0.19% | -0.90% | 0.36% | 0.07% | 0.21% | 0.54% | -0.65% | |
| CHF | 0.46% | -0.28% | 0.82% | 0.45% | 0.76% | 1.11% | 0.65% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The USD struggled to find demand following mixed macroeconomic data releases on Thursday. The Initial Jobless Claims declined by 12,000 to 216,000 for the week ending October 26, while the Employment Cost Index rose by 0.8% in the third quarter, falling short of the market expectation of 0.9%. The risk-averse market atmosphere, however, helped the USD find a foothold later in the American session. In the European morning on Friday, US stock index futures trade in positive territory, pointing to an improving market mood. In October, Nonfarm Payrolls are forecast to rise by 113,000 following the impressive 254,000 increase recorded in September.
During the Asian trading hours on Friday, the data from China showed that the Caixin Manufacturing PMI rose to 50.3 in October from 49.3 in September. This reading came in better than the market expectation of 49.7. In the meantime, the Producer Price Index in Australia rose 0.9% on a quarterly basis in the third quarter, at a stronger pace than analysts' estimate of 0.7%. AUD/USD showed no reaction to these data releases and was last seen trading in the red, slightly above 0.6550.
USD/CHF lost about 0.4% on Thursday and touched its lowest level in two weeks near 0.8630. The pair recovers slightly in the European morning on Friday and trades at around 0.8650. October Consumer Price Index (CPI) data from Switzerland will be published during the European trading hours.
USD/JPY declined sharply on Thursday and dropped below 152.00, pressured by hawkish comments from Bank of Japan (BoJ) Governor Kazuo Ueda. The pair stages a rebound on Friday and trades above 152.50.
EUR/USD extended its recovery and closed the fourth consecutive day in positive territory on Thursday. The pair struggles to build on its weekly gains and fluctuates below 1.0900 in the European morning.
GBP/USD failed to benefit from the persistent USD weakness and fell to its lowest level since mid-August below 1.2850 on Thursday. Although the pair managed to erase a small portion of its daily losses, it lost its traction after testing 1.2900. At the time of press, GBP/USD was moving up and down in a narrow band near 1.2890.
Gold made a deep correction from the record-high it set at $2,790 and lost more than 1.5% on Thursday. XAU/USD clings to small daily gains and trades above $2,750 to begin the European session.
Nonfarm Payrolls FAQs
Nonfarm Payrolls (NFP) are part of the US Bureau of Labor Statistics monthly jobs report. The Nonfarm Payrolls component specifically measures the change in the number of people employed in the US during the previous month, excluding the farming industry.
The Nonfarm Payrolls figure can influence the decisions of the Federal Reserve by providing a measure of how successfully the Fed is meeting its mandate of fostering full employment and 2% inflation. A relatively high NFP figure means more people are in employment, earning more money and therefore probably spending more. A relatively low Nonfarm Payrolls’ result, on the either hand, could mean people are struggling to find work. The Fed will typically raise interest rates to combat high inflation triggered by low unemployment, and lower them to stimulate a stagnant labor market.
Nonfarm Payrolls generally have a positive correlation with the US Dollar. This means when payrolls’ figures come out higher-than-expected the USD tends to rally and vice versa when they are lower. NFPs influence the US Dollar by virtue of their impact on inflation, monetary policy expectations and interest rates. A higher NFP usually means the Federal Reserve will be more tight in its monetary policy, supporting the USD.
Nonfarm Payrolls are generally negatively-correlated with the price of Gold. This means a higher-than-expected payrolls’ figure will have a depressing effect on the Gold price and vice versa. Higher NFP generally has a positive effect on the value of the USD, and like most major commodities Gold is priced in US Dollars. If the USD gains in value, therefore, it requires less Dollars to buy an ounce of Gold. Also, higher interest rates (typically helped higher NFPs) also lessen the attractiveness of Gold as an investment compared to staying in cash, where the money will at least earn interest.
Nonfarm Payrolls is only one component within a bigger jobs report and it can be overshadowed by the other components. At times, when NFP come out higher-than-forecast, but the Average Weekly Earnings is lower than expected, the market has ignored the potentially inflationary effect of the headline result and interpreted the fall in earnings as deflationary. The Participation Rate and the Average Weekly Hours components can also influence the market reaction, but only in seldom events like the “Great Resignation” or the Global Financial Crisis.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 ahead of NFP
EUR/USD corrects lower toward 1.0850 after posting gains for four consecutive days. Investors stay on the sidelines while waiting for the US October employment report, which will highlight Nonfarm Payrolls and Unemployment Rate figures.
GBP/USD stabilizes near 1.2900, eyes on US employment report
GBP/USD holds steady at around 1.2900 in the European session after closing deep in the red on Thursday, as the risk-averse market atmosphere didn't allow the pair to gain traction despite persistent USD weakness. Investors await US NFP data.
Gold recovers above $2,750 as traders brace for US NFP data
Gold recovers some lost ground and trades slightly above $2,750 on Friday. The uncertainties surrounding the US presidential election and the ongoing geopolitical tensions in the Middle East provide some support to the precious metal as focus shifts to key US data.
US Nonfarm Payrolls Forecast: NFP October report set to show slower job growth
US Nonfarm Payrolls are expected to rise by 113K in October after September’s stellar gain of 254K. The United States Bureau of Labor Statistics will release the labor data on Friday at 12:30 GMT. The US Dollar’s fate and the Fed’s future interest rate cuts hinge on the US jobs data.
Bank of Japan holds rates steady amid signs of modest GDP growth
Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.