Euro and British Pound Gain Traction as Investors Anticipate US Employment Report
Introduction: Investors are eagerly favoring the euro and British pound today as they anticipate the release of the US employment report. This report holds the potential to indicate steady hiring ahead, but its impact on future Federal Reserve policy remains uncertain. With overlooked household financial conditions and strikes, the report might not offer clear guidance. Nevertheless, economists predict an increase of 173,000 jobs in September, while forthcoming data could provide mixed signals, further boosting demand for risk assets.
Increased Focus on Labor Market and Average Earnings
Changes in the labor market and average earnings have the potential to heavily impact the Federal Reserve’s future rate plans. As borrowing costs escalate and the labor market shrinks, policymakers may be prompted to reconsider their hawkish stance. The technical picture indicates a growing demand for the euro, with major players’ support playing a crucial role in maintaining control at specific levels. However, the position remains uncertain until control over 1.2190 is regained. If recovered, there is potential for the euro to reach 1.2220 and possibly touch 1.2060.
Modest Gains in European Stocks
In other market news, European stocks recorded modest gains in anticipation of the US payrolls report. This progress mirrors similar trends in Asian markets. The report is projected to reflect a hiring slowdown in September, which could lessen pressure on the Federal Reserve to further hike interest rates. Among the stocks, miners led the index following discussions between a Chinese iron-ore buying agency and global suppliers.
Struggles in Energy Stocks
Energy stocks faced struggles due to concerns over demand and the largest weekly fall since March. Additionally, shares of Royal Philips NV fell by 8.5% after agreeing to additional testing on certain devices. Despite these minor losses, US equity futures remained stable for both the and .
Anticipated Nonfarm Payrolls Report
The highly anticipated nonfarm payrolls report is expected to show that US employers hired 170,000 workers in September, down from August’s 187,000. This contrasting figure comes in the wake of a weaker than expected ADP employment report. Investors, including Barclays Private Bank’s chief market strategist Julien Lafargue, are closely monitoring wage growth figures and job creation numbers.
Influence of Upcoming Payrolls Data and Inflation Figures
The currently holds at 4.74%, and upcoming payrolls data and inflation figures, including CPI numbers, are expected to influence its movement. Meanwhile, Asian stocks experienced an uplift due to gains in Hong Kong’s and optimism surrounding Golden Week consumption trends. San Francisco Fed President Mary Daly hinted that the central bank may keep rates on hold if inflation and the jobs market cool.
Cryptocurrency Market Update
In the cryptocurrency market, Bitcoin rose slightly to $27,515.87, while Ether increased to $1,624.19. The also experienced a 0.7% rise.
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