The market mood is showing an upbeat movement despite Fed warnings about financial risks and the ongoing US-China tensions. Nonfarm Payrolls are set to show an increase of around one million jobs.
The US is expected to report an increase of 978,000 jobs in April, topping March’s 916,000 increase. Economists expect the Unemployment Rate to drop from 6% to 5.8% and earnings are projected to drop. Uncertainty about such robust hiring implies surprises are due, with some expecting 1.3 million positions gained. As of March, some 8.4 million Americans that lost their jobs in the pandemic are still out of work.
On Forex News
The US dollar has been edging lower as 10-year Treasury yields remain in low ground under 1.60%
USD/CAD is trading below 1.22 ahead of the release.
The Bank of England announced it is slowing down the pace of bond purchases but left the total unchanged. The pound traded choppily before stabilizing around 1.39.
Bitcoin is trading below $55,000, Ethereum around $3,4000 and XRP below $1.60 as digital assets are off their highs.
Frequently Asked Questions
Nonfarm payrolls is the measure of the number of workers in the U.S. excluding farm workers and workers in a handful of other job classifications.
Non-farm payroll data is analyzed closely because of its importance in identifying trends related to the rate of economic growth and inflation. If non-farm payrolls are expanding, the increase is an indication that the economy is growing.
The non-farm payrolls report is one of the most-anticipated economic news reports in the forex market. It is published the first Friday of the month at 8:30 a.m. Eastern time by the U.S. Bureau of Labor Statistics.