Octa: U.S. unemployment is likely to decline in September
KUALA LUMPUR, MALAYSIA - Media OutReach - 5 October 2023 - U.S. 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 Fed continue to keep interest rates on pause.
The U.S. is expected to add 150,000 jobs and bring unemployment down to 3.7.% in September.
The better labour market situation will give a reason for the U.S. Fed to be hawkish. In that case, the main upside target for USDJPY is 150.00–152.00.
The U.S. Labour Department is expected to report on Friday that the U.S. 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 per cent in August to 3.7 per cent in September.
This data will be an essential part of the Fed's settlement as it assesses the current state of the U.S. economy and the appropriate course of monetary policy. An improving labour market will give the U.S. Fed a reason to be hawkish, while a decline in new jobs will suggest that the U.S. 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 U.S. 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 U.S. dollar. It may strengthen even more if the U.S. 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.
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About Octa
Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries with more than 42 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.
Octa has also won more than 60 awards since its foundation, including the 'Best Educational Broker 2023' award from Global Forex Awards and the 'Best Global Broker Asia 2022' award from International Business Magazine.
