The U.S. Dollar is trading in less favorable ranges, losing ground at the time of writing following unexpectedly low Non-Farm Payroll figures for October
Overview
With a number apparently heavily influenced by strikes and natural disasters that took place throughout the long month, change in NFPs came in at just 12.0K instead of the 100.0K expected. Although September’s numbers were good, they were revised downward a bit from 254K originally to 223K. Meanwhile the Unemployment Rate stayed at 4.1% and Average Hourly Earnings climbed a bit more than estimated 0.4% vs. 0.3%. It is the slowest pace of hiring since October 2020.
At first glance, the analysis to make out of the labor sector’s stumble in the official figure is that it can help make a case for the Fed to be more stimulus-driven in their policymaking. Clearly, although the economy has been resilient and on the upside, there have been some shocks outside of financial control that disturbed the steadiness and flourishing in employment. Perhaps borrowing lowering costs is merited when these things happen. The Federal Reserve will announce its decision on Thursday Nov. 7th instead of Wednesday since this time we have an election the same week.
What to Watch This Week…
- Monex USA Online is always open
MXN ⇑
The Mexican Peso has roller-coastered all week as election tension make the USD/MXN the most volatile. Simply put, markets will not give credit to a good economy down there until they know for sure what challenges are ahead, if any. Mexico headlines will be also focused on what will be happening next week here with a mix of election and monetary policy nervousness.
EUR ⇑
The Euro had jumped momentarily by half a percent as soon as labor in the U.S. revealed a two-year low, but has quickly faded and is now back to levels experienced overnight. Although Gross Domestic Product surprised on the positive and Consumer Price Index increased to an annual average of 2.0%, the shared currency has failed to gain as anxiety over the U.S, election has overshadowed evidence of improvement in regions elsewhere. While the global growth narrative has been plagued by troubles all over, we have seen recovery but there will not be much appetite for chewing away at solid figures until the leadership of the U.S. is decided.
