Non-Farm Payroll: Key Fundamentals Indicating Strong Labour Market, US Dollars Gaining Across-Board.

Last month, the Non-Farm Payroll positive release stood as a catalyst for the US dollar’s massive gains. The strong data point drove the US Dollar Index to the upside by a wide percentage margin, with the currency ascending to a multi-year high against its most liquid counterpart, the EURO hitting 0.99145 to 0.99990 price level below parity

Read more

The price of gold experienced a sharp decline from the $1,875 resistance region against the US Dollar. It transacted at a price below the $1,850 support and strived to drop towards $1800 but was wedged by strong support levels.

Read more

Non-Farm Payroll; The United States job momentum is Likely to be Maintained even as Experts Predicts Calmness

April experienced another solid increase in jobs at 428,000 compared to the forecast of 390,000 despite the business struggling to find suitable staff. Although wage pressures were not as intense as expected, this is likely to be a temporary lull as labor market tightness will keep upward pressure on inflation.

Read more

Non-Farm Payroll; Job Market Recovery Curve Steadies, USD Gaining Across Board

Lately, a report from yahoo finance relayed that half of the United States metro area has recovered jobs lost swiftly to the pandemic drift that almost cut off the engine of the economy. A huge compositional shift was seen across the Dallas city, Salt Lake City, San Phoenix, Nashville city with Austine and the Texas city toping the recovery chart.

Read more

United States’ Economic Progression Likely to be Distracted by War Fears in Europe

The strength in the job market reported by the Labor department may push the Federal Reserve to further raise interest rates at its next policy meeting in May, according to the Fed Chair, Jerome Powell; U.S central bank must move expeditiously to raise rates and possibly more aggressive to keep high inflation from becoming entrenched.

Read more

The Non-Farm Payroll; The U.S. Economy is barreling Gradually Towards Full Employment, USD Gaining on Safe-Haven.

Lately, a report from yahoo finance relayed that half of the United States metro area has recovered jobs lost swiftly to the pandemic drift that almost cut off the engine of the economy. A huge compositional shift was seen across the Dallas city, Salt Lake City, San Phoenix, Nashville city with Austine and the Texas city toping the recovery chart.

Read more

The Australian Job Market Participation Rate Increased as its Economic Growth Trajectory Holds Firm.

The last employment report released from the Australian Bureau of Statistics (ABS) saw a continuous spark in recovery in line with its growth pattern already set in motion. In the growth trajectory, the report showed a job expansion that cuts across 11 industries with Health care and Social Assistance topping the chart by 26.2% from the onset of the pandemic.

Read more

U.S Retail Sales; Early-Kick Off Amidst Inflation and The Shadow of Omicron

Retail sale is an economic indicator in the United States that keeps inventory of the demand for finished goods, by measuring the purchases of durable and non-durable goods over a defined time. It is the primary gauge of consumer spending, which accounts for the majority of the overall economic activities.
The year kicked off with gains across virtually all retail sectors, U.S. retail sales excluding auto increased 7.2% year over year, with online sales growing 10.4% compared to this time last year, even with the shadow of Omicron and elevated inflation, consumer spending was sustained by pent-up savings, wage growth and continued reopening of the economy.

Read more

Non-Farm Payroll; United States’ Economy Crawling Back to Normalcy from the Scars of Omicron Virus

The non-farm payroll (NFP) report is a key economic indicator for the united states. It is intended to represent the total number of paid workers in the U.S excluding farm employees, government employees, private household employees, and employees of non-profit making organizations. The report is released every first Friday of a new month by the Bureau of labor statistics and is among the most market-moving data points for US Dollars, US equities, Treasuries, and Gold.
The strength of the economy last year stood in stark contrast to the collapse in activity in early 2020, but also speaks to the success of both the public and private sectors in quickly adapting to the unprecedented challenges created by the pandemic, that being said, potential headwinds still exist, as the global risks associated with COVID-19 pandemic persist.

Read more

Canada overnight rate; Bank of Canada More likely to Dance to Hawkish Hymn

The Overnight Rate is the interest rate at which major financial institutions in Canada borrow and lend overnight funds among themselves.
Short-term interest rates are predominant factors in currency valuation. This is highly correlated with the economic outlook as its changes can impact both inflation and recession.
Two years into the COVID-19 pandemic, government responses still have gaps that fail to include some small businesses hit hardest by lockdowns and renewed restrictions tied to the Omicron wave, as Canadian restrictions to tackle COVID-19 will likely come at a cost of slower economic growth at the start of the year than other developed economies, notwithstanding that has not stopped investors from raising bets on interest rate hike.
With the Bank of Canada set to be the first major central bank to hold its first policy meeting of 2022, Experts are expecting an interest rate rise of at least 25 basis points to 0.5% which has remained at 0.25% after it was lowered from 1.75% in March 2020, as Senior economist Jean-Francois Perrault believes central Bank of Canada could be forced to act sooner than anticipated and forecast rate to hit 2% by the end of 2022.

Read more

United States Retail Sales; Massive Holiday Sales, With E-commerce Racking up Gains

The United States economy is booming even though collective anxiety levels remain uncomfortably high as still elevated levels of COVID-19 cases and deaths have kept the virus a central consideration for many households, as consumers are no longer receiving stimulus money, and inflation is at its highest in decades.
Despite concerns about supply chains, inflation, and the pandemic, fundamentals are generally strong, and households have continually proved resilient in their spending over the past few months. Consumer expectations about the labor market are decidedly optimistic, and Americans have accumulated wealth via stimulus and asset holdings over the past couple of months.

Read more

The European Refinancing Rate Increase Could Strengthen The Euro Currency

For decades, the strength of recovery from recession is often driven by monetary policymaker’s decisions. The European Central Bank has left its interest rate low in order to push its economy towards its policy goals of maximum employment and price stability. From the outlook, the economy has continued to rebound strongly from the downturn and its Gross Domestic Product (GDP) grew with strong speculation for further growth beyond the pre-pandemic level in the near term.

Read more

United States Retail Sales; Consumers’ Confidence to be Influenced by Omicron Variant

Retail sale is an economic indicator in the USA that keeps inventory of demand for finished goods, by measuring the purchases of durable and non-durable goods over a defined time. It is the primary gauge of consumer spending, which accounts for the majority of the overall economic activities.
The state of the COVID-19 pandemic has determined the course of the economy since it was first discovered in March 2020, the economy has grown more resilient to the effect of the virus, as it’s clear that consumer behavior, not government restrictions had the greatest effect on economic outcomes.

Read more

The Omicron Virus Pose Big Threat to Interest Rate Increase, Canadian Dollar Gaining Across-Board

Last month, the Bank of Canada signaled that it could hike its interest rates as soon as April 2022. In its deliberation, due to high energy prices and supply chain bottlenecks, they speculated that inflation would stay above 4.8% target in the long-term next year and then ease to 2.1% in the fourth quarter of 2022.  In response to the hawkish statement, the Canadian Dollar gained higher at 0.4% against the US Dollar(greenback).

Read more

Australian Cash Rate; Virus Risk Likely to Influence Decision

The Reserve Bank of Australia last month held its Official Cash Rate at 0.10% after it was changed to 0.25% in the month of November 2020, as early glimpses of a rising rate appear more likely, of which Philip Lowe, Governor of the Reserve Bank of Australia is currently using to spur wage rises and help return inflation to its target rate of 2% to 3%. As it is widely expected to see the bank scale back the weekly pace of purchases from the current A$4 billion (2.8 billion) amid an improved outlook, supply constraints in the local bond market, and signs that the Federal Reserve will quicken its taper decision.

Read more

United States Non-Farm Payroll; Economic Recovery Hanging on a Pendulum as the Market views Omicron Virus in a Rear Mirror

The non-farm payroll (NFP) report is a key economic indicator for the united states. It is intended to represent the total number of paid workers in the U.S excluding farm employees, government employees, private household employees, and employees of non-profit making organizations. The report is released every first Friday of a new month by the Bureau of labor statistics and is among the most market-moving data points for US Dollars, US equities, Treasuries, and Gold.
The economic recovery in recent months has been marvelous even though it has been based on the anticipation that the world would be able to keep ahead of the virus which appears to have resurfaced again in the last few days.

Read more

United States Retail Sales; Inflation and Supply Constraints Key Factors

Retail sale is an economic indicator in the USA that keeps inventory of demands for finished goods, by measuring the purchases of durable and non-durable goods over a defined period of time. It is the primary gauge of consumer spending, which accounts for the majority of the overall economic activities.
United States retail sales for the month of October stood at 0.7% compared to the forecast of -0.2%, although fears that supply constraints could disrupt the holiday shopping season amid a continued shortage of goods.

Read more

United Kingdom official bank rate; Rate hike likely amidst Subtype of the Delta variant

Official Bank Rate is the interest rate that the Bank of England (BOE) pays commercial banks for reserve account deposits. This operation provides a bulk of liquidity to the banking system as short-term interest rates are a paramount factor in currency valuation, which is highly correlated with the economic outlook because its changes can affect both inflation and recession. The expectation for November 3rd meeting is that the BOE will deliver a 15-basis points rate rise to 0.25% given the heightened concerns over inflation, although the risk is that the BOE will not match the hawkish expectations priced in, given that money markets are currently looking for the most aggressive tightening cycle.

Read more

US Federal Fund Rate; Inflation A Big Threat To The economy, Could Tapering Be Gradual?

Ahead of the Federal Oder Market Committee (FOMC) meeting on the monetary policy review today by 7 pm (GMT + 1), the US Dollar experienced a mixed performance but resolved and it’s gaining with acceleration to the upside.

Short-term interest rates are a paramount factor in currency valuation. This is highly correlated with the economic outlook because its changes can affect both inflation and recession.

Read more

Public Sentiment Holds Firm Ahead of the Non-Farm Payroll Report, US Dollar Index Gains

Last month, the Non-Farm Payroll release drove the US Doller Index to the downside by some percentage point. This was triggered by a modest selling pressure as a result of the job data released that missed the market expectation by a wide margin. Commodities such as gold (XAUUSD) and Silver XAGUSD) gained momentum with slight upside gains. In the same order, EURUSD and GBPUSD were not left out of the ride as they edged higher in a decent bull run to 1.15852 and 1.36579 price levels respectively. In the report, the US job market rose by 194,000 in September, less than the market expectation of 500,000.

Read more

New Zealand Unemployment Rate; Delta variant more likely to impact Employment figures.

The New Zealand Unemployment Rate is the percentage of the total workforce in New Zealand that is unemployed and actively seeking employment during the previous month. It is a lagging indicator, meaning that it generally rises or falls in the wake of changing economic conditions.
New Zealand rebounded strongly from a recession last year, largely due to its success in eliminating the coronavirus within the borders and reopening its domestic economy well before other advanced nations. The country had been virus-free for months until an outbreak of the highly infectious Delta strain in August.

Read more

The European Stocks And Euro Hold Gains Ahead of the European Refinancing Rate

since March 2016, the European Central Bank (ECB) interest rate was kept relatively low at 0.00% in response to the great recession hit that affected the European Union, the developed and emerging economies. Presently, the interest rate is still maintained low and it is expected to be sustained at that level till full recovery and the core ECB monetary policy goals are met.

Read more

Canadian Overnight Rate; Recent Jobs Gains likely to Influence Decision

The Overnight Rate is the interest rate at which major financial institutions in Canada borrow and lend overnight funds among themselves.
Short-term interest rates are predominant factors in currency valuation. This is highly correlated with the economic outlook as its changes can impact both inflation and recession.
With over 75% of the eligible population being fully vaccinated, the Canadian economy has been re-opening over the past few months, after a strong rebound was recorded at the start of the year following significant losses in 2020, but has since slowed through the spring and summer largely due to the effect of the Delta variant.

Read more

Australian Unemployment Rate; Recent Lockdown Likely to Stall Further Decline

The Australian Unemployment Rate is the percentage of the total workforce in Australia that is unemployed and actively seeking employment during the previous month.
Its impact is indicative of the economic outlook because the number of unemployed people is an important signal of overall economic health and consumer spending is highly correlated with labor-market conditions

Read more

United States Nonfarm Payroll: Delta Variant Likely to Slow but Not Hinder the Economic Recovery

The Non-farm payroll (NFP) is a monthly measure of United States labor market health, released every first Friday of the month by the Bureau of Labor Statistics. It is a key economic indicator for the United States economy and among the most market-moving data points for the US Dollar, US equities, Treasuries, and Gold.

Short-term interest rates are a paramount factor in currency valuation. This is highly correlated with the economic outlook because its changes can affect both inflation and recession.

Read more

NZD/USD Stays Resilient Ahead of the Reserve Bank of New Zealand Official Cash Rate Release

In the second quarter, the New Zealand economy maintained a steady accelerating growth pattern. In its growth trajectory, external demand experienced a surging increase, and its stocks and equities edged higher with New Zealand Dollar (NZD) staying resilient in gains smashing multi-points resistance levels. Currently maintaining gains above 0.69560 price point.

Read more