Job growth likely slowed to 170,000 in January from just over quarter of million the prior month, partly restrained by wild fires in California and cold weather across much of the country.
Those distortions add a further complication to the readout, which will include annual benchmark revisions, new population weights and updates to the seasonal adjustments.
A look at the day ahead in U.S. and global markets from Mike Dolan
Another forecast miss from a U.S. megacap combines with caution ahead of January’s employment report to keep a lid on stocks into Friday’s open – with buoyant long-dated Treasuries squashing the yield curve to its flattest for the year.
– When the Bureau of Labor Statistics releases its nonfarm payrolls count for January, it is projected to show growth of 169,000, down from 256,000 in December, but nearly in line with the three-month average.
– Also, annual benchmark revisions are projected to show a record increase of 3.5 million in the population and 2.3 million in household employment.
– Recent indicators show that while hiring has leveled off, layoffs aren’t increasing and workers aren’t quitting, though job openings are on the decline.
Given the way markets have reacted to key events and economic data this week all we can say at this point is there will be a reaction to the U.S. jobs report, especially if there is a miss in either direction.
Looking at the Heatmap shows a focus in the JPY… USDJPY finding 150-152, as suggested, a sticky zone.
GBPJPY has bounced back above the key 188.00 level after a brief move below it.
Keep an eye on the U.S. 10-year bond yield post-data and a 4.40%~4.50% range
Gold (xau/usd) seems to be on a continuous buying bias. It has been like this since forever and now reinforced with the Trump’s administration. The currency pair picked up from a low at price 2858.61 which was the lowest point it got to so far today. From then it has been a steady buying bias uptil 2870, the highest price it has reached today.
I see a buy bias on the gold and a continuation in same direction it has gone since 1996. This Metal is indeed a bullish one. Let us all tread softly. Today is NFP (Non Farm Payroll) day by exactly 2:30pm Nigerian time.
Don’t risk more than 2-5% of your capital to preserve your capital.
A word is enough for the wise. I come in peace.
Thanks,
TOPNINE.