US new hires are expected to rise by 150,000 jobs in September, and unemployment is likely to fall to 3.7%, which could help the US Federal continue to keep interest rates on pause according to international broker, Octa.
The US Labour Department is expected to report that the US added 150,000 jobs in September, according to economists polled by Reuters, down from 187,000 added in August. They also expect the unemployment rate to fall from 3.8% in August to 3.7% in September.
This data will be an essential part of the Fed’s settlement as it assesses the current state of the US economy and the appropriate course of monetary policy.
An improving labour market will give the US Fed a reason to be hawkish, while a decline in new jobs will suggest that the US labour market is not strong enough, prompting the central bank to be more dovish in its decisions and statements.
“According to the August data, the labour market is returning to normal with a gain of 187,000 jobs, and this trend is likely to continue in September,” said Kar Yong Ang, the Octa financial market analyst.
“Such an improvement in the US labour market will support the U.S. dollar,” he added.
The Fed’s recent announcement that interest rates will remain ‘high for longer’ has rattled global markets, adding strength to the US dollar. It may strengthen even more if the US labour market forecast is confirmed.
For the currency market players, this may mean that USDJPY is likely to continue rising, breaking through the critical resistance level of 150.00. The main target is 150.00–152.00.
