
Non-farm payrolls indicate the number of jobs in the United States the previous month, excluding those working in the agricultural sector. If the total increase is higher than the forecast, then it is positive for USD but if it is lower than predicted, it is negative for the USD.
In October, it was predicted that there are fewer jobs added in the U.S. The unemployment rate is estimated to remain low, while the salaries were expected to increase slightly. On Friday, the US Bureau of Labor Statistics reported the non-farm payrolls.
According to Bloomberg’s economic predictions, the change in non-farm payrolls was expected to increase by 85,000, compared to 136,000 in September. However, the result is 128,000 which is stronger for the market.
They also estimated that the unemployment rate would be 3.6%, compared to 3.5% in September. The actual unemployment rate was 3.6%, as predicted.
It was also estimated that average hourly earnings on a month-on-month basis, would rise by 0.3%, while average hourly earnings year-on-year were expected to increase by 3.0%, compared to 2.9% in September.
The announcement of the non-farm payroll results, the USD Index appear to be higher by 0.1%.
Market Trends in Employment
IHS Markit stated last week in its index report, that employment numbers would decrease, due, in part, to “more cautious hiring strategies”.
Challenger Gray on Thursday estimated that unemployment would increase between September and October, with the total unemployment lower than in October the previous year.
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Last updated: 04 November 2019.
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