Discover what the non-farm payrolls report is –
including the date of the next release, and
why it’s important to traders.
US non-farm payrolls are expected to grow by 184,000 in September down from 201,000 in August. It comes as the US dollar bulls gather momentum and the US 10-year treasury yield rises above 3.2%.
Victoria Scholar talks with chief market analyst, Chris Beauchamp, about the outlook for tomorrow’s non-farm payroll (NFP) report. Wednesday’s private sector ADP report was well in excess of expectations, putting investors on notice for a potentially strong number when non-farms are published. However, with expectations already raised it will need to be a solid number for the dollar in order to see strong buying. In addition, wage numbers still need to move higher at a much faster pace, although this of course brings with it inflation concerns.
In addition, a stronger NFP report will increase the possibility of a faster pace of tightening by the Federal Reserve (Fed). While the Federal Open Market Committee (FOMC) did raise rates at its last meeting, the relatively cautious wording of the statement did little for the dollar. But in the wake of fresh comments about interest rates still being below the neutral level, a healthy beat on NFPs tomorrow only boosts the chances of more hawkish Fed policy.
IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
See important Research Disclaimer.