NFP is on tap today on the first Friday of the month and USD in focus. The Bureau of Labor Statistics will soon release their non-farm payroll report for October.
While hurricanes Irma and Harvey swept the Eastern coast of the US in September, policymakers and economists say that the natural disasters had little influenced the job market movements in the country. September’s statistics show that the unemployment rate in the United States dropped by 0.2% in September, which accounts for a total decline of 4.2% for the month. The total number of unemployed workers fell by 331,000 to 6.8 million.
Generally, non-farm employment was little impacted by the hurricanes, with a drop of 33,000 after adding 172,000 on average per month over a 12-month period. The food and beverage sector was one of the most affected, experiencing a steep decline in employment rates, while others saw a minor yet below-trend growth due to the impact of Irma and Harvey.
What to Expect
While investors are eagerly awaiting the NFP release, the prevailing consensus is that the US economy will have added 312,000 new jobs in October, while the unemployment rate is expected to stay at 4.2%.
All Eyes on EURUSD
In anticipation of the big news release, EURUSD topped up 0.1% in the morning, trading around 1.16438 and heading towards 1.165 levels. Despite the positive movement of the EUR, traders will also need to watch the resistance and support levels of the pair today. A break below October’s lows at 1.5885 is to be expected with chances that the pair would then move towards 1.1448 (June 30 highs).
Generally, the single currency seems to be sticking to its daily gains, while its greenback counterpart remains defensive as market participants are digesting news about the appointment of Jerome Powell as the next Fed Chair, succeeding Janet Yellen in February when her tenure ends.