August NFP preview & What to expect from the latest NFP data release today!

October 6, 2017

NFP Preview: 6 October 2017 by Traders Trust.

August NFP preview & What to expect from the latest NFP data release today!

This article is originally referred from Traders Trust News

At 12:30pm GMT, today the Bureau of Labor Statistics will release the NFP Report for September.

Will it exceed analysts’ expectations or will it disappoint? At this stage, we can only keep our eyes peeled on the news, eagerly awaiting the release.

However, let us peek at what happened last month.

AUGUST NFP Review

The experts expected 180,000 jobs to flood the market. Instead, only 156,000 new jobs were created for the month, which was way weaker than their expectations and the 209,000 jobs added the previous month.

Statistics were not too optimistic either, with the unemployment rate hitting 4.4%, higher from 4.3% in July, even as the active labour force availability rate remained steady at 62.9%. The number of jobless workers rising to 7.1 million could potentially have something to do with it.

Meanwhile, the average hourly earnings only grew by 0.1% compared with expert expectations revolving around 0.2%. Hence, the dollar lower spikes as a reaction to the report’s weakness did not surprise experts at all. However, the ranging movements of the greenback did not last long, as the American currency soon regained its losses.

Some suggest that the main driver of the USD’s NFP intraday reversal was the weakness being priced in a ‘buy-the-news’ style, while others believe that a presumably hawkish FOMC comment later in the month.

What to Expect

Analysts’ estimates for September are not too bright either. Only 85,000 new jobs are expected to be added as against a previous encouraging figure of 156,000. Hence, the unemployment rate is expected to remain at 4.4%, with average hourly earnings (m/m) revolving around 0.3% as against a previous 0.1%.

The dollar is expected to move even more, with a ‘solid employment growth’ in September, according to Markit’s Services PMI.

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Original Source: Traders Trust News

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