The big data release in the US, Non-Farm payroll figures were released this afternoon delivering the lowest reading in 20 years. Following a month that has been dampened by several hurricanes hitting the US east coast, the release indicated there were 33,000 less jobs created than in the month before. From the market’s perspective this was actually met with the strengthening of the US Dollar as the clear up operation has created more jobs, which could be reflected next month. The US Unemployment rate also dropped from 0.2% to 4.2% which is the lowest level since 2001.
US Wage Growth was also on the rise nearly reaching 3%, which is the level Janet Yellen has set for the country. This evening there will be four members of the Federal Open Market Committee speaking, who are the people who vote on interest rate decisions in the US. There is expected to be an interest rate hike in the US in December and despite the poor data today markets still believe this will happen.
For the next two months, assuming the data keeps delivering, there is little doubt that the hike won’t happen and the markets have evidently begun factoring this in. However, as the GBP/USD once again looks close to this year breaking below 1.30 a quick change in events could change things.
North Korea Rumours
There is talk as we come to close of business on Friday that North Korea may test a nuclear missile that could reach the US this weekend. If this was to be the case the US Dollar which is considered a safe haven currency could certainly make even further gains. Whilst this is merely a rumour weekends over the last three months have been the time that North Korea perform their tests, so things could certainly be different come Monday