CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Established in 1974
Clients across 156 countries
15,000 markets worldwide

Will a strong non-farms report mean a Fed rate hike?

While a repeat of October’s estimate-smashing number is unlikely tomorrow, a non-farms report broadly in line with the 200,000 consensus could be key in solidifying a Federal Reserve rate hike later in December.
 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Jobs
Source: Bloomberg

With US payrolls averaging 217,000 jobs a month this year, the trend has been for strong jobs growth. Many feel that this jobs report will solidify a December hike from the Federal Reserve, with the unemployment rate sitting nicely at their year-end forecast.

Economists’ consensus is that we will see 200,000 jobs created, but what happens if we see an unexpectedly lower number of under 140,000? Would a poor number significantly lower the implied probability of a hike at the December Federal Open Market Committee meeting? One feels that with the Fed’s credibility at stake, a failure to hike in December could be taken very negatively by traders both for US equities and the USD.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.