
On Friday, November 4, at 15:30 (Moscow time), data on employment and unemployment in the United States for October will be released. Often, the release of these data causes a spike in volatility in the markets.
Analysts suggest that 200 thousand new jobs were created in the States last month (Nonfarm Payrolls, NFP). The unemployment rate is projected to rise to 3.6%. Also in the focus of investors and traders is the growth rate of wages, where a slowdown is expected from 5.0% yoy to 4.7%.
Low NFP (less than 150 thousand) can put pressure on the USD exchange rate: investors will believe that the Fed will reduce the pace of rate hikes. High NFP (more than 250 thousand) are able to strengthen the US currency, emphasizing the strength of the labor market, and bringing to life speculation of further unprecedented sharp tightening of policy.
It is also worth paying attention to the revision of the previous Nonfarm Payrolls, which amounted to 263 thousand. This factor will influence market sentiment in addition to the published fresh data.
Keep an eye on upcoming key events that may significantly affect the markets.
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