USD Rocket as the Unemployment rate Drops

USD Rocket as the Unemployment rate drops, the nonfarm payrolls report is an important measure of the US economy’s health.

It is a measure of the number of employees in the United States excluding agricultural workers and a few other occupational categories.

The Bureau of Labor Statistics (BLS) conducts payroll surveys of commercial and public sector employers in the United States.

Topic

NFP USD Correlation
Strong US Dollars
Market Speculations
US Stocks are at their lowest
Weak Euro

NFP USD Correlation

The nonfarm payroll report’s publication can have a substantial influence on financial markets that comes out on

the first Friday of every month highlighting the previous one.

Investors and traders regularly monitor this data to gain a sense of where the economy is headed.

A healthy labour market often leads to increased consumer spending, which promotes economic growth.

According to the most recent nonfarm payroll data, employment growth slowed in August but remained strong overall.

The unemployment rate stayed stable at 4%, close to historic lows. Wages increased as well,

but at a slower rate than in prior months. Overall, this was regarded as good news for the economy,

indicating that, despite some slowing in employment creation at the time of writing, there was still robust demand for workers.

The US Dollar is strengthening as unemployment rates fall to a five-decade low,

it has reached its highest level in more than two years, as the US economy continues to improve,

the US dollar index, which measures the greenback against a basket of six major currencies, rose 0.4% to 97.74.
In July, the US economy added 164,000 jobs, and the unemployment rate fell to 3.9%, its lowest level since December 1969.

Strong US Dollars

The robust jobs data has increased the likelihood that the Federal Reserve will hike interest rates again in November, with a string of solid economic data releases, including retail sales and inflation, which has also strengthened the US dollar.

Market Speculations

If US nonfarm payrolls exceed expectations in October 2022, the EUR/USD might fall below $0.97, the nonfarm payrolls in the United States are predicted to rise by about 1.5 million by October 2022, which makes the EUR/USD under pressure after a continuation of the bearish trend from earlier this week, as the exchange rate approaches the October low 0.9640.
If this happens, it could mean big things for investors and traders alike, the EUR/USD may continue to reverse the previous week’s gains as it approaches the October low (0.9640), but a lack of momentum to test the 0.9700 to 0.9720 area may prompt a larger correction as it approaches the Fibonacci overlap around 0.9760 to 0.9770.
Otherwise, a move below the 0.9640 regions may open up the downside targets of 0.9610 and 0.9570, but the Fibonacci overlap around 0.9530 to 0.9550 may offer a near-term floor for EUR/USD as it approaches the monthly range’s bottom.

US Stocks are at their lowest

Stock index futures are typically volatile early Friday as Wall Street anticipates the September employment data for 2022. Equity bulls are probably expecting weaker-than-expected payroll data, which would provide the Fed with some breathing room.
This week, authorities have emphasized the hawkish stance, and one of the key reasons is a tight labour market. The employment data comes at a key time in the stock market too, the S&P 500 Index is trading at a record low, and the Dow futures fall 200 points as rates pop on September’s jobs report.

Weak Euro

The EUR/USD lost early gains as German data came into play as well. Figures from the US labour market may reflect more of the same, weak industrial production and retail sales provide further evidence that the German economy continues to slide into a recession

After increasing by 0.3% in July, industrial production fell by 0.6% in August, and the EUR/USD erased early gains and was trading at 0.9758 at the time of writing, despite economists’ predictions of a 0.4% decrease. Today, the labour market numbers in the United States have been reviewed, and they may offer further information on the state of the US economy and the Fed’s next move.

USD Rocket as the Unemployment rate Drops

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