Categories: Market Overview

Still strong US labour market

Fresh ADP estimates noted a 239K increase in US employment in October, showing more substantial job growth than in September (192k), contrary to the expected slowdown to 178K. This data primarily guides traders as the most similar indicator before the official release is publicised on Friday.

The ADP estimated that manufacturing cut 20K jobs, the first reaction to higher interest rates and a strong dollar. Meanwhile, mining and construction created jobs (+11K and +1K, respectively). The services sector was producing jobs in recreation (+210K), trade and transportation (+84K), while information (-17K), financial (-10K) and professional services (-14K) declined.

Earlier in the week, there was an unexpected rise in vacancies of 437K in September, the first increase after five months of decline. At the same time, the global vacancy rate remains by a large margin at abnormally high levels.

The market reaction, however, was much more subdued than the figures suggested, as all attention is now focused on the Fed’s rate decision and the accompanying commentary later today. However, this data is an indirect and early warning of the labour market’s strength, to which the Fed is now paying so much attention. A solid rise in employment could be an early warning that we should not expect the Fed to soften its tone and slow the pace of rate hikes from the next meeting (the markets fully account for the 75-point hike).

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

Share
Published by
The FxPro Analyst Team
Tags: jobsusd

Recent Posts

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

3 days ago

USDCHF Wave Analysis 20 December 2024

- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…

3 days ago

The US dollar ends the year on a strong note

The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…

3 days ago

How deep will crypto dive?

The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…

3 days ago

EURGBP Wave Analysis 19 December 2024

- EURGBP reversed from support zone - Likely to rise to resistance level 0.8300 EURGBP…

4 days ago

EURJPY Wave Analysis 19 December 2024

- EURJPY broke resistance zone - Likely to rise to resistance level 165.00 EURJPY currency…

4 days ago

This website uses cookies