Summary:
-
US economy adds 136k new jobs in September
-
Stocks extend recovery but initial USD strength fades
-
Crypto newsletter: Markets take a breather
-
Pound little change on the week; Brexit still dominates
The US economy added 136k new jobs in the non-farm sector in September, the number was only marginally lower than the median Bloomberg estimate at 145k. At the same time, we got a noticeable upward revision to August (to 168k from 130k), while the unemployment rate unexpectedly dropped to 3.5% from 3.7% with no change in labour participation. On the other hand, annual wage growth slowed down to 2.9% from 3.2%, bringing a wide disappointment as the consensus had pointed to no change. The initial move in the US dollar is to the upside, though US yields have barely moved. Overall, the report showed that the labour market remains still quite resilient amid a dismal performance elsewhere.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe market reaction initially was clearly positive, seemingly more due to such a pessimistic view heading into the release rather than an impressive set of data itself. Stocks have remained well supported since the release with the US500 near its highest level of the day on the European close and higher by around 80 points from where it trade just over 24 hours ago after the second disappointing ISM release of the week.
The first move in the buck on the data was also positive with USD gaining across the board but this has since reversed somewhat and at the time of writing the greenback is actually trading lower against most its peers on the day. This reversal has been accompanied by a similar move in bonds with an initial spike in yields not lasting.
Our latest crypto newsletter focuses on the following and can be viewed in full here:
-
Most of crypto markets have settled down this week following the last week declines
-
EOS is stuck in a bullish channel
-
IOTABTC keeps rising
Once again the week has been dominated by Brexit-related headlines as PM Boris Johnson has made his move and unveiled his latest plan to reach a new deal with the EU. It’s widely believed that the latest proposals won’t fly as a final solution, but it is no doubt encouraging that they have at least been received and not dismissed out of hand. The latest reports suggest the PM has a week to revise the deal and it looks like Boris will now have to turn to plan B. The pound is mixed on the week with many traders still awaiting further clarity on the Brexit situation before committing to any long-term positions.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
