November Non-Farm Payrolls rose 228,000 solidly above expectations
Month-on-month Average Hourly Earnings rose just 0.2%
This was against the consensus expectation of an increase of 198,000 and Average Hourly Earnings (month-on-month) of +0.3%
Meanwhile the Unemployment Rate held steady at 4.1% - continuing at its lowest level since December 2001.
Now all the speculation centres on how this data may influence the Federal Reserve’s FOMC at next week’s meeting. It’s pretty much an odds-on certainty that the Fed will proceed with a 25 basis point rate hike on Wednesday.
But much of the focus will be on the FOMC’s “dot plot” which illustrates committee members’ thinking of the path and pace of future rate hikes. Back in September the dot plot indicated that the Fed would raise rates by an additional 75 basis points in 2018. However, some analysts believe that with growth picking up and inflation likely to follow the central bank may favour tightening monetary policy by an additional 25 basis points next year – a potential increase of 100 basis points. If that’s the case then it may add to speculation that the yield curve could turn negative – an event which has previously preceded a recession in the US.
Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you can afford to take the high risk of losing your money.
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AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.