📆 NFP report due at 12:30 pm GMT, USD gains against major peers
Stock indices in Europe and US futures are trading higher ahead of the US jobs data release. Slight gains in US index futures come in spite of a broad USD strengthening that can be spotted today. US dollar is trading higher against all major peers and EM currencies.
When it comes to the upcoming NFP release it should be noted that it may be a bit less relevant than usual. Why? Because the FOMC meeting was two days ago! The US central bank launched tapering and said that rate hikes are off the table for now. Having said that, today's reading may not have that much of an impact on monetary policy in the near future. Nevertheless, short-term volatility pick-up around the release hour is likely therefore reading should not be ignored completely.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appMarket expectations
-
Non-farm employment. Expected: 470k. Previous: 194k
-
Wage growth. Expected: 4.9% YoY. Previous: 4.6% YoY
-
Unemployment rate. Expected: 4.7%. Previous: 4.8%
ADP data released earlier this week pointed to an over-500k jobs gain. However, the most recent NFP report failed to follow in ADP's footsteps and showed a rather lacklustre 194k increase, compared to 523k signalled by ADP. Wage growth data should be watched closely as Powell said that while there are no signs of wage-price spiral yet, Fed watches wage developments closely.
US dollar index (USDIDX) is trading higher today as USD gains against other major currencies. The index has recently bounced off the lower limit of the upward channel and is now testing the resistance zone ranging between 94.50 mark and 38.2% retracement of the 2020 drop. Source: xStation5
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.
