Non-Farm Payroll; US Job Market Gaining Stronger, Fed Interest Rate Hike Could Be a Constrain in Near Term
Tracking the economic growth pattern, the United States job market has remained resilient amid the inflationary pressures hitting hard on a global scale. Its rebound is the strongest among the big western economies. The job lost to the economic downtime were recovered speedily across the different sectors of the economy which cut across the Construction and manufacturing sector, transportation and warehousing, professional and business services, technologies, and the hospitality industry.
The multiple rounds of job growth injected into the economy, coupled with rising wages have helped shrugged off the mounting recession fears. Though, analysts are speculating recession in 2023 due to the persistent Federal Reserve Interest rate hike.
Other indicators proving economic resilience include rising average hourly earnings by 0.4% and the Purchasing Manager’s Index showing industrial expansion by 5.1. Its GDP in the third quarter increased by 3.2% following the previous lows. The Unemployment rate remains low at 3.7% and could have the potential for further decline.
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 forex market with the following trading instruments on the ACT Brokers platform, as the pairs are mostly affected by the data release; EURUSD, GBPUSD, XAUUSD, USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD, US30, US100, USOIL, US Oil, Facebook, Amazon, Tesla, etc.
Time Schedule for The Next NFP release:
Date: Friday 6th January 2022
Time: 2:30 pm (GM + 1)
Author: Amogo Solomon
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