ETFWorld.co.uk
London RationalFX

RationalFX: Non-Farm Payroll disappoints

RationalFX: Friday’s highly anticipated Non-Farm Payroll data came in at 194k jobs added in September which was a big miss as the consensus forecast was expected to be 500k.

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RationalFX


USD

The average hourly earnings increased by 0.6% vs 0.4% the month prior – the Federal Reserve will be pleased to see that wages are increasing despite other signs of inflation.

Following the poor data, this provided a rally in GBP/USD pushing back to just over the 1.36 mark and which now seems to stabilise.

Global stock markets also traded higher, signifying a more risk-on sentiment amongst investors which in turn helped Sterling.

GBP

The pound began to appreciate against both majors towards the end of last week.

Market expectations today are focussing on the possibility of the Bank of England to become the first major central bank to start raising interest rates or relieve inflation pressures.

However from what we’ve seen in this current market, rates look to be priced in for a first interest rate hike in February 2022.

Key announcements

None

Source : ETFWorld.co.uk

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