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US Non-Farm Payrolls Data to be Released Tonight, Expected to Impact Fed's September Interest Rate Decision
Summary: According to reports, the July employment report set to be released at 8:30 pm Beijing time on Friday is expected to show an addition of 110,000 jobs, a significant drop from June's 147,000; the unemployment rate is expected to rise from 4.1% to 4.2%; and the average hourly wage rate is expected to increase by ...
According to reports, the July employment report set to be released at 8:30 pm Beijing time on Friday is expected to show an addition of 110,000 jobs, a significant drop from June's 147,000; the unemployment rate is expected to rise from 4.1% to 4.2%; and the average hourly wage rate is expected to increase by 0.3%, higher than June's 0.2%. If the predictions are accurate, this will reinforce the view of a slowing job market, although it may not necessarily require a response from the Fed.
During this week's interest rate meeting, Powell did not provide guidance on the September rate decision, stating that there are many data releases before then, with Friday's July non-farm report being a piece of the puzzle that will help shape expectations for a rate cut in September.
Analysts suggest that if non-farm employment data is below 100,000 and the unemployment rate rises, it may indicate a weakening job market, dampening hawkish expectations for the Fed and putting pressure on the dollar, which would be favorable for a rebound in gold prices.
However, if non-farm employment data unexpectedly exceeds 150,000, the strength of the dollar may continue, as strong US employment data could eliminate the possibility of two rate cuts by the Fed this year.
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Link: US Non-Farm Payrolls Data to be Released Tonight, Expected to Impact Fed's September Interest Rate Decision [Copy]
