USD rising on robust NFP report, Wage growth rate at its best since 2009
- USD non-farm payroll report came in better than expected in October, raising in to 250k, while the expectation was 195K.
- US average hourly reaches its highest since 2009
- US mid-election to be eyed, as another leg of USD rally begins
US non-farm payroll comes in much better than expected
According to US bureau of labor statistics, the total nonfarm payroll employment has reach to 250k jobs in October, while the earlier forecast was 195K. This much better than expected NFP report has been driving USD higher and the previous worry over USD is being pushed aside. In accession, the unemployment rate remained at its lowest since 1969 at 3.7%. When this report is being prepared, the USD has been traded at 96.05 and the it has started to rise against most of the currencies, as EUR/USD resides at 1.1385 and GBP/USD resides a little bit above 1.2950 (02.11.2018, GMT. 17.00).
The NFP report was due at GMT 12.30 and just after release of the report, the market has experienced a 27-pips upward move in the first hour. However, the upbeat USD pace is expected to be much intense at the next week, as the market is eyeing the mid-term election. Moreover, the wage growth has seen a 0.2% increase and it is the fastest raise in wage since 2009. According to the report, the wage growth report has reached 3.1% and a rate hike is expected from the FED in December.
USD intra-day price chart
Upon the arrival of NFP report, US unemployment data and wage growth rate, the USD had reached 96.41, yet the pace has become a little bit sluggish right now, as US mid-term election is being eyed.
So far, so well, according to market data and economic stature, a USD buying position seems to be strengthening and another leg of USD rally might have been at the beginning. However, cautions should be taken, as US mid-term election due next week should play pivotal role in determining the USD forecast. At this moment, it seems that it would take a few days to absorb the recent market data and a USD bull-run could extend towards 96.50-98.50 region in the upcoming weeks, as FED is expected to go for another aggressive rate hike in December.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]