Data released on Friday showed that Nonfarm Payrolls rose by 187K in August, surpassing expectations. Analysts at TD Securities consider that recent labor-market and consumer prices data should be judged as positive news by Federal Reserve officials. They continue to view July as the last hike of the Fed's tightening cycle.
Key Quotes:
This is the third consecutive report where employment growth records a below-200k number. On the other hand, the UE (Unemployment) rate surprisingly jumped an eye-popping three tenths to 3.8%, as the labor force surged. Average hourly earnings surprised expectations to the downside for the first time since February.”
Data out this week supports the idea of an economy that is gradually losing momentum as it continues to normalize after a rapid tightening of monetary policy and the easing of a large Covid-driven supply shock.
We think this week's labor-market and consumer prices data should be judged as positive news by Fed officials, and we continue to view July as the last hike of the Fed's tightening cycle.
Data is likely to remain choppy in the next several months and markets are unlikely to move in a straight line.
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
AUD/USD: Rebound remains capped at 0.6200 despite gradual US tariff plan
AUD/USD stalls the overnight bounce to near 0.6200 despite reports of gradual Trump tariffs boost investors' sentiment and weigh on the US Dollar. Bets that the Fed will pause its rate-cutting cycle, the RBA's dovish shift, China's economic woes and geopolitical risks act, however, remain a headwind for the Aussie.
USD/JPY volatile within range below 158.00 after BoJ Himino's comments
USD/JPY is seeing a volatile Asian session below 158.00 on Tuesday, courtesy of a dovish commentary from BoJ Deputy Governor Himino as he ruled out a rate hike later this month. However, a negative sentiment on Japanese stocks and a broad US Dollar retreat drag the pair lower.
Gold price regains positive traction amid retreating US bond yields, softer USD
Gold price attracts some dip-buyers during the Asian session on Tuesday and reverses a part of the previous day's retracement slide from a one-month top. Reports that Trump's top economic advisers are mulling a slow ramp-up in tariffs to avoid a sudden spike in inflation trigger a pullback in the US bond yields, which keeps the USD bulls on the defensive and benefits the XAU/USD.
Crypto Today: BTC price plunges 4%, Litecoin X account hacked; traders position for US inflation report
The cryptocurrency sector plunged by 5% on Monday, with over $148 billion wiped off the aggregate market capitalization. Bitcoin price dropped below $90,600 for the first time in 24 days, as traders anticipate the upcoming US CPI report.
Bitcoin falls below $92,000 as exchanges show overheating conditions
Bitcoin (BTC) continues its ongoing correction, falling below $92,000 on Monday after declining almost 4% last week. CryptoQuant data shows that BTC is overheating in exchanges and suggests further decline ahead.
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.