US DOLLAR PERKS UP, GOLD PRICE STAYS POSITIVE, S&P 500 FUTURES UNDER PRESSURE IN RESPONSE TO MONTHLY JOBS REPORT
Markets are little changed in response to the latest nonfarm payrolls report[4]. September 2020 NFP[5] data just crossed the wires and showed the US economy added 661K jobs, but the headline figure came in below estimates looking for 859K. One bright spot out of the monthly jobs report is the still-falling unemployment rate, which ticked lower to 7.9% from 8.4% previously.
SEPTEMBER 2020 NONFARM PAYROLLS DATA
Chart Source: DailyFX Economic Calendar[6]
That said, the lower unemployment rate could be driven in part by a lower labor force participation rate as workers grow discouraged amid mass job displacement due to the coronavirus lockdown earlier this year. Nonfarm payrolls data also revealed that employee compensation has slowed as indicated by average hourly earnings.
While nonfarm payrolls data is a closely watched economic release with potential of weighing materially on markets, this month’s NFP report seems to be taking the back seat due to other fundamental drivers like fiscal stimulus negotiations and US President Trump testing positive for COVID-19.
US DOLLAR INDEX PRICE CHART: 5-MINUTE TIME FRAME (02 OCTOBER 2020 INTRADAY)
Chart created by @RichDvorakFX[7] with TradingView[8]
The US Dollar probed intraday lows in the wake of the September NFP report, but as FX traders digested the employment data, the DXY Index[9] subsequently turned higher.
