Non-Farm Payroll; The US Job Market Could Possibly Slow, Gold Recovering Gains on Safe-Haven
Basically, macroeconomic fundamentals indicate that there is a strong correlation between the Fed’s monetary policy and the labor market. In an effort to combat the looming inflation that has hit a four-decade high, the Federal Reserve increased its terminal interest rate six consecutive times since March. This tight monetary policy could possibly slow down the economy.
Lately, reports from economic analysts relayed that the federal reserve interest rate hike is having a slight punchy effect on the US labor market. The number of Americans filing for unemployment benefits jumped to its peak level since August. However, the figure is relatively low by historical standards. The release according to the Labor Department showed that 240,000 people applied for jobless aid last week.
Many experts predicted that the United States will enter a recession in 2023 as slower economic growth is caused by rising borrowing costs. The housing market is not left out of the curve as mortgage rates doubled. This is driving the gold (XAUUSD) commodity market higher as traders hop to invest in safe-haven assets.
However, the labor market remained strong with 261,000 jobs added last month and an average of about 407,000 per month. Track record shows that 2022 has proven to be the second-best year for hiring after 2021.
The unemployment rate stood at 3.7%, the highest level since February 2022, and the Purchasing Manager’s index prints 47.6. The GDP grew by 2.6 percent in the third quarter of 2022.
Nevertheless, Traders should brace themselves up for a period of high volatility as an increase in Non-farm Payroll will strengthen the USD while a decrease will weaken the USD.
In response to the news release, trade the financial market with the following trading instruments on the ACT Brokers platform(actmarkets.com), as they are mostly affected by the data release; BTC/USD, ETH/USD, XRP/USD, LTC/USD, EURUSD, GBPUSD, XAUUSD, XAGUSD, XPTUSD, XPD/USD USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD, US30, US100, USOIL, US Oil, Facebook, Amazon, Tesla, etc.
Time Schedule for next NFP release:
Date: 2nd December 2022
Time: 2:30 pm (GM + 1)
Author: Amogo Solomon
- The New Zealand Dollars (NZD) Now In Focus As The RBNZ Is Set To Hike its Official Cash Rate Further
- DXY BREAKS OUT OF THE DAILY DEMAND – Strong Enough to Start a Bull Market?
- CURRENCY QUAKE: BRICS Alliance Sends Shockwaves Through US Dollar – Will the Retail Sales Say Otherwise?
- CADCHF COOKING A MASSIVE RALLY – The CXY Approaching H4 Demand.
- GOLD BECOMES INDECISIVE – DXY Stuck in Demand Zone.