Jump to content
The Twitter Feeds are now back on the Platform ×

USD supported after US jobs and ahead of CPI data


Recommended Posts

Strong US data continues to support a stronger dollar as traders consider the upside surprise for the incoming consumer price data on Thursday.

 Jeremy Naylor | Writer, London | Publication date: Monday 10 October 2022 

Strong US jobs data

Friday's non-farm payrolls (NFPs) showed that 263,000 jobs were created in the United States last month.

The unemployment rate fell to 3.5%, from 3.7% in August, and average hourly earnings rose 0.3% on last month, and 5% on September 2021.

The number of people employed in the US is now higher than it was before the start of the Covid-19 pandemic. And according to the latest report of the bureau of statistics, job openings fell to 10.1 million, their lowest level since May 2021, while only six million people are looking for a job.

Meanwhile global equity markets fell after the publication of US jobs data for September.

On Friday the S&P 500 dropped 2.8%, while the Nasdaq shed 3.8%. US stock and bond markets will remain closed today for Colombus Day.

Overnight the APAC region followed suit, and European equity markets opene lower this morning.

Interest rates

All this reflects a tight market that gives enough room to the US Federal Reserve (Fed) to continue to raise interest rates to bring inflation down.

This Thursday, consumer price index (CPI) is expected to rise by 8.1% in September year-on-year (YoY), after 8.3% in August. Core CPI increase is expected to accelerate to 6.5%, after 6.3% in August, matching the peak recorded in March 2022, a then 40-year high.

Should inflation data rise more than expected, like it did last month, it could give the dollar a leg up and send equity markets lower.

  • Like 1
Link to comment
5 minutes ago, MongiIG said:

Strong US jobs data

Friday's non-farm payrolls (NFPs) showed that 263,000 jobs were created in the United States last month.

Placed trades on USDCHF and USDJPY last week on Friday for NFP.

USDCHF before NFP, 7th October 2022. Buy trade

image.thumb.png.9e79d21cfe83c05c43279091b0286ee1.png

 

USDCHF after NFP. Breakout looks like USD strength to continue.

image.thumb.png.336446544334513e18865fb3ac007cf8.png

 

I think CPI data can still push USD to strengthen

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,695
    • Total Posts
      92,059
    • Total Members
      41,981
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Bernard
    Joined 31/03/23 18:01
  • Posts

    • Hello everyone, i am looking to hold shares long term Apple Tesla in a spreadbetting account just wounded if there is a calculation example Tesla $195.00 1 share = ? ponds per point spread bet. Thanks for any help
    • #USDCAD: Time For PullbackUSDCAD reached a key level.Testing that, the price broke and closed above the resistance line of a falling wedge pattern.I expect a pullback now.Goals: 1.355 / 1.3577  
    • Charting the Markets: 31 March The FTSE 100, DAX 40 and Nasdaq 100 surge higher on a positive outlook as EUR/USD, GBP/USD pause their ascents while USD/JPY continues to rise as the greenback appreciates. WTI remains capped by resistance, gold forms a technical triangle as Robusta coffee trades near six-month highs.   Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 31 March 2023                 This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
×
×
  • Create New...