US NFP: High-frequency labor market information indicates strong September job gains – Goldman Sachs

Anil Panchal FXStreet

Ahead of the September month US employment numbers, up for publishing at 12:30 GMT on Friday, Goldman Sachs came out with its upbeat forecasts. The banks estimate the headline Nonfarm Payrolls (NFP) to rise as 1,100K versus the previous 1,371K while the Unemployment Rate is anticipated to slip from 8.4% prior to 8.1%.

The forecasts rely on the earlier picking up economic activities while flashing positive signals.

Key quotes

High-frequency labor market information indicates strong September job gains.

the second derivative improvement in the public-health situation suggests scope for a pickup in Sun Belt job growth.

Read: Nonfarm Payrolls Preview: Eagerly waiting for an upbeat report

EUR/USD turns heavy...

Ahead of the key data, EUR/USD drops 0.12% to 1.1735 as the passage of the coronavirus (COVID-19) stimulus worth of $2.2 trillion by the US House favor the greenback as markets in Tokyo open for Friday's trading.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro defends the 1.1500 level ahead of a string of US labour data

The Euro (EUR) posts marginal gains against the US Dollar (USD) on Tuesday as Monday’s reversal from three-week highs at 1.1560 has been contained at 1.1500 so far. A mild risk appetite on hopes of a negotiating process in Iran and investors’ cautiousness ahead of the release of key US labour indicators are providing some support to the pair on Tuesday.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.