An Important Day For Trading: Focus On The US Non-Farm Payrolls Today.
We are closely watching the US Non-Farm Payrolls today! The US Jobs Report will be released at 12:30 p.m. (GMT).
Why Is This Important?
The Non-Farm Payrolls track the change in the number of people employed by the US in manufacturing, construction and goods companies. It does not include farming industry employment. The US Jobs Report is so important for the upcoming Fed decisions.
This week's data showed US private-sector job creation fell well short of expectations at 2.369 million, but the number for May was revised sharply upwards to a net gain of 3.065 million, from an initial estimate that 2.76 million jobs had been lost.
On the other hand, U.S. manufacturing activity rebounded in June, hitting its highest level in more than a year as the broader economy reopened, but rising COVID-19 infections threaten the recovery.
The minutes of the June FOMC meeting reveal that the Fed is leaning toward enhanced forward guidance and away from yield curve control, at least for now.
FOMC Minutes said Negative interest rates not an attractive policy tool. FOMC's Participants agreed that they had experience with asset purchases and forward guidance and that these are effective tools. They leaned toward outcome-based forward guidance and indicated that more guidance would be needed in the coming months, so be ready for it.
US Nonfarm Payrolls are expected to rise 3.074K from 2.509K. The Unemployment Rate is expected to drop to 12.3% from 13.3%. Average hourly earnings will also be significant and are expected to come out -0.6%.
In addition to the US Jobs Report, we will focus on Factory Orders and Initial Jobless Claims in the US.
02 Jul 20 (Thu)
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