Main market news on September 23
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
Strong American job surge is expected in May
In May, American job surge was still sturdy, which is a further sign of an acceleration in economic activity, which would effectively seal the case for an interest rate soar this month notwithstanding sluggish wage revenues.
The previous month, nonfarm payrolls soared by 185,000 jobs, according to a Reuters poll of financial experts, having soared 211,000 in April. May's projected soar would be in line with 185,000 average monthly job surge this year.
The unemployment rate is predicted intact at a 10-year minimum of 4.4%. In 2017, it has edged down four-tenths of a percentage point. On Friday, the Labor Department will issue its closely watched employment report, which is less than two weeks before the Fed’s June 13-14 policy gathering.
This month, American financial markets have priced in nearly a 25 basis points soar in the Fed's benchmark overnight interest rate, as CME FedWatch informed.
In March, the Fed lifted interest rates by 25 basis points. Reports on consumer spending as well as manufacturing suggest that the US economy managed to gain speed early during the second quarter after GDP added at a tepid 1.2% annualized rate in the beginning of the year.
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Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
Main market movements on September 22
The market sentiment remains risk-off amid rising virus cases around the world and fears over new restrictions and lockdowns.
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China's industrial rebound, progress in US fiscal stimulus and other important news in this article.
US stimulus package improved sentiment
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
The US weekly labor data is out!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
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