US Nonfarm Payrolls Growth Slows in December
Key labor market reports, including Canadian employment data and nonfarm payrolls, could steer markets in a new direction. These figures may affect currencies, commodities, and stocks. At the same time, energy prices are rising, and metals markets remain strong, backed by safe-haven demand.
Key Data Out Today
- US Nonfarm Payrolls (Nov): likely increased by 160,000 jobs last month. This follows a surge of 227,000 in November. This change is a payback after being severely constrained by hurricane and strike disruptions. The estimates ranged from 120,000 to 200,000 jobs added.
- US Unemployment Rate (Dec): Consensus holds steady at 4.2%.
- Canadian Employment (Dec): Expected net change: 25K (Previous: 50.5K). Unemployment rate forecast at 6.9%.
- US Average Hourly Earnings (MoM): Predicted at 0.3%, indicating wage growth stability.
- Michigan Consumer Sentiment Index (Jan): Anticipated at 73.8, offering insights into consumer confidence trends.
Commodities
- Natural Gas: Up 2.79% to $3.80/MMBtu, supported by cold weather forecasts.
- Gold: Gains 0.32% to $2,678.41/oz as traders hedge against potential market volatility.
- Silver: Climbs 0.64% to $30.28/oz, benefiting from improved industrial demand.
Currency Movements
EUR/USD
- EUR/USD: Trades lower at 1.0285 (-0.14%), with dollar strength capping euro gains.
GBP/USD
- GBP/USD: Down to 1.2275 (-0.27%), reflecting persistent UK economic concerns.
AUD/USD
- AUD/USD: Slightly weaker at 0.6190 (-0.08%), pressured by global risk-off sentiment.
NZD/USD
- NZD/USD: Down 0.19% to 0.5586, weighed by cautious investor sentiment.
USD/JPY
- USD/JPY: Gains 0.14% to 158.31 as higher US yields support the dollar.
USD/CNY
- USD/CNY: Down slightly to 7.3518 (-0.06%), with yuan showing resilience amid stabilizing Chinese economic indicators.
USD/CHF
- USD/CHF: Steady at 0.9126, reflecting balanced flows between the dollar and the franc.
USD/CAD
- USD/CAD: Higher at 1.4414 (+0.14%) as the Canadian dollar braces for employment data.
USD/MXN
- USD/MXN: Holds at 20.50, showing resilience amid mixed global trends.
USD/INR
- USD/INR: Flat at 85.90, showing limited movement with stable oil prices in focus.
Market Outlook
As the week ends, the spotlight remains on US and Canadian labor data, which could shape near-term market dynamics. Commodities, particularly crude oil and natural gas, remain supported by demand optimism. On the currency front, traders will monitor employment reports closely. Any significant surprises may influence central bank policy expectations. Lastly, the Michigan Consumer Sentiment Index will provide insights into inflation expectations and consumer spending trends.