The U.S Non Farm Payrolls will be released Friday, 7th of December 2018 13:30 GMT and is a key economic indicator that can cause volatility in the markets.
What to Expect this Month?
The expectation for the Nonfarm Payrolls report is that a disappointing 200K new jobs were added during November, compared to 250K added in October.
The markets faced a day of turmoil on Thursday, as Oil prices tumbled, Wall Street closed with the S&P 500 down 0.2% at 2696 and the FTSA lost in excess of 3% value thanks to falling US Treasury yields.
There are increasing concerns over the US economy experiencing an economic deceleration and there are suggestions that the Fed will pause, or reduced rate hikes next year and the Nonfarm Payrolls could provide a boost for dollar Bulls after a rough week trading, if the report is better than expected.
A solid NFP figure along with signs of accelerating wage growth in the United States could revive market expectations relating to US interest rates during 2019.
It is expected that the average hourly earnings will be up 0.3 percent in November after gaining 0.2 percent in October, leaving the annual increase in wages at 3.1 percent.
As the Fed is very data-reliant in decision making during recent years, the Non Farm Payrolls play a vital role in the US economic outlook moving forwards, and today’s report is considered as one of the most important reports in many months.
Currently, the financial markets are pricing in one price hick for 2019, which in terms of expectations is a big change from the suggested two rate hikes for 2019 predicted only last month.
Opportunities Around the NFP Reports:
Regardless of the results of the Non Farm Payrolls, the markets always experience moves immediately after the release which offer traders excellent short-term trading opportunities.
Positive or negative reports will affect market sentiment which can create new trends and trading opportunities.