fbpx

Attention shifts to NFP

Attention shifts to NFP - MarketPulseMarketPulse

image

Home/COVID-19/News events/Newsfeed/Non-farm payrolls/US election

Share 0

US futures are slightly higher ahead of the open on Friday, as traders turn their attention away from Capitol Hill and to the December jobs report.

It’s been some week, and 2021 has well and truly picked up where 2020 left off. Thankfully – and I wouldn’t bet against being proven wrong – at least on the US political level, I think the worst of the drama may be behind us. This week was a massive step too far and the video put out by the President suggests he knows it too and may now opt to de-escalate.

Joe Biden will become President on 20 January and the topic of conversation can turn back to getting this horrific wave of Covid-19 under control and the economic recovery.  The stimulus that was passed at the end of last year avoided a cliff-edge but doesn’t come close to the Democrats’ ambitions and they now have the numbers, just, to do something about it.

The jobs report today will offer some interesting insight into the state of the economy as more restrictions are forced upon it. The country may not be in full lockdown yet but the numbers are shocking and the new strains are compounding the problem. The country may not opt for a lockdown but clearly more severe measures are coming if there is any hope of getting it under control in any reasonable time.

Initial expectations had been for just shy of 100,000 jobs created last month but the ADP number earlier this week may have forced a rethink. To be clear, I do not look to the ADP for a reliable sense of what to expect from the NFP, but it was a massive miss to the downside, showing 123,000 job losses. It’s difficult to ignore and actual expectations may now differ from official forecasts.

The unemployment rate is also expected to tick higher to 8.7% but it’s probably not worth reading too much into this at the moment. Participation will also be important but, ultimately, the numbers in the coming months will likely be far worse and give a much better insight into the level of support needed and the size of the task at hand.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.

Craig Erlam

Latest posts by Craig Erlam (see all)

Original author: Craig Erlam

Copyright

© MarketPulse

Sinic Holdings Wins Titanium Award at "The Asset E...
Oil holds gains on OPEC+ commitment
 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

 
     
 

Broker Search

Latest Spot Rate

 
25 January 2021
RIYADH, Saudi Arabia, Jan. 25, 2021 /PRNewswire/ -- Fund plans to grow its assets under management to USD1.07 trillion by end of 2025 and contribute USD320 billion to Saudi Arabia's non-oil GDP PIF has created 10  new sectors, launched over 30 new co...
25 January 2021
SINGAPORE, Jan. 25, 2021 /PRNewswire/ -- StashAway, Southeast Asia's largest and fastest-growing digital wealth manager for both retail and accredited investors, has announced that they're managing more than US$1billion (SG$ 1.35billion). Since Stash...
25 January 2021
KUALA LUMPUR, Malaysia, Jan. 25, 2021 /PRNewswire/ -- StashAway, Southeast Asia's largest and fastest-growing digital wealth manager for both retail and sophisticated investors, has announced that they're managing more than US$1billion (MYR 4.05billi...
23 January 2021
Key risk events today: ECB President Lagarde Speaks. (Previous analysis as well as outside sources – italics). EUR/USD: Weekly gain/loss: +0.79% Weekly close: 1.2170 Weekly perspective:...
23 January 2021
First, a review of last week's events: - EUR/USD. We published a chart seven days ago that clearly showed how the correlation between the S&P500 index and EUR/USD was broken in early January. But now everything is back to normal: the S&P500 c...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.