All Eyes on the US as Payroll Data Looms

Daily Analysis - 05/08/2016

Unemployment Data Set to be Released Late Today, Economic World Stands By


US Nonfarm Payrolls data from July will be released to the public at 13:30 GMT today. The payroll figure measures the change in the number of people employed during the previous month with job creation considered of utmost importance considering it is the foremost indicator of consumer spending. 180,000 American jobs are expected to have been added to the labor force in July after June saw a jump of 287,000 new employees. While the Federal Reserve is trying to find a balance with respect to its interest rate outlook, a string of bullish data raises the prospect of a reintroduction of normalization probabilities to US financial markets, marking exactly what is needed by the FOMC to make any decision. A positive payroll report would be a healthy indicator for the American economy while an increase of 200,000 new jobs or more would be considered very positive for the monetary policy outlook.

US Indices Finish Day With Mediocre Results, Eye NFP

US indices finished flat Thursday with the trading session sandwiched between the Bank of England interest rate decision and the anticipation of the US payroll data on Friday. At the closing bell, the Dow Jones Industrial Average finished slightly lower, falling by -0.04% while the S&P 500 crept up a point to finish mostly unchanged. However, the calm before the storm is a very common theme for Wall Street as recent history has shown, with American financial markets appearing eerily calm before the volatile movement following the immediate moments after the unemployment results are delivered.


Gold Standing Pat in Wake of US Data

Gold stayed relatively flat on Thursday, falling briefly after the rate cut from the Bank of England was announced before rebounding. Analysts believe that the minuscule movement in precious metals yesterday was largely attributed to the greater focus placed on the upcoming US monthly job reports set for release this afternoon. Gold finished the session at $1,367.05 per troy ounce, up 0.17% on the session. The level gold finished the day on Thursday marked one of the highest levels for the commodity in over two years. The yellow metal has sky-rocketed 29.00% over the last six months and is likely to continue its momentum higher if the nonfarm payroll figure falls short of consensus estimates.


Upcoming Events

  • Time
  • Currency
  • Event
  • Forecast
  • Previous
  • 13:30 GMT
  • USD
  • Nonfarm Payrolls (Jul)
  • 180K
  • -287K
  • 13:30 GMT
  • USD
  • Unemployment Rate (Jul))
  • 4.80%
  • -4.90%
  • 13:30 GMT
  • CAD
  • Employment Change (Jul)
  • 10.0K
  • -0.70K
  • 15:00 GMT
  • CAD
  • Ivey PMI (Jul)
  • 50.90
  • 51.70

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