Employment

Signs of a weakening labor market may produce headwinds for the British Pound as it puts pressure on the Bank of England (BoE) to further unwind its restrictive policy.

Australia is anticipated to add 26.5 jobs in July following the 50.2K expansion the month prior.

GBP/USD appears to be bouncing back ahead of the July low (1.2616) as it extends the rebound from the monthly low (1.2665).

The update to Canada’s Employment report showed a 1.4K contract in June versus forecasts for a 22.5K rise, while the jobless rate widened to 6.4% from 6.2% during the same period.

New Zealand’s Employment report may drag on NZD/USD as the update is anticipated to show another decline in job growth.

Australian unemployment may have risen, but so did all other key metrics including job growth and the participation rate. And that has likely provided a floor for AUD/USD and AUD/JPY over the near term.

Over the past few hours we have seen the Fed hint at multiple cuts this year, and Australian employment data outperform to send AUD/USD above 66c.

AUD/USD traders will keep a close eye on US inflation data to decipher Fed policy, Australia's employment report to see if another month of strong job losses ensues.

Rate hikes are really beginning to take a bite out of the US employment numbers, with job openings falling at their fastest pace since the pandemic.

Rate hikes are really beginning to take a bite out of the US employment numbers, with job openings falling at their fastest pace since the pandemic.

With some ambiguity about the Fed’s imminent policy decision still lingering, this month’s jobs report will be critical...

The leading indicators point to slightly below-expectation reading in this month’s NFP report...see what they're saying and possible ways to trade it!

This will be the final NFP report before the next Fed meeting in early May, where traders are currently split between expecting a 25bps and a 50bps rate hike.

We expect the BOC to reiterate that the Canadian economy is on track for a full recovery next year, and that an interest rate hike cycle could begin as soon as H1...

Commodity currencies were under pressure overnight. The Norwegian Krone (-1.42%) led the rout followed by the Australian dollar (-1.29%) with the New Zealand dollar (-1.03%) rounding out the top three.

Tomorrow at 11.30 am Sydney time, Australian labour force data for September is due to drop.

With a string of positive jobs data from Canada, the BOC may feel like they are in a better position to continue with their tapering at the next meeting