Daily Brief, Nov 1: Economic Events Outlook – Brace to Trade US NFP Report

Happy Friday, traders.

The market is all about the US employment data figures, which are coming out during the US session today. A day before, the US personal spending dropped to 0.2% from the expectations of 0.3% and weighed on US dollars.

The Personal Income also came in as expected 0.3%. The Chicago PMI also dropped to 43.2 in October from 47.1 of Previous Month. Department of Labour published the awaited US Unemployment claims for this week at 17:30 GMT, came as 218K against the expectations of 215K, and weighed on US Dollar. Overall the macroeconomic data on Thursday from the United States was not in favour of US Dollar and supported the Gold prices in the financial markets.

Watchlist – Economic Events Outlook

GBP – Manufacturing PMI – 9:30 GMT
It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

Markit is due to report the UK manufacturing PMI figures with a slight negative forecast of 48.2 v. 48.3.

USD – Labor Market Report – 12:30 GMT
The US NFP (Nonfarm Employment Change) and the unemployment rate will remain under the spotlight. Both these economic data sets will be monitored at 12:30 GMT. NFP is expected to be slightly at 90K vs. 136K during the previous month.

Whereas the unemployment rate is likely to advance from 3.5% to 3.6%, which may weigh on the US dollar.

Average hourly earnings are assumed to grow by 0.3% vs. 0.0% previously. The weaker data will offer an opportunity to short the Greenback for a quick 60-100 pips and vice versa.

USD – ISM Manufacturing PMI – 14:00 GMT
On Friday, the ISM manufacturing PMI will remain in focus, especially after the index sank below 50 in September for the first time in three years, abruptly elevating concerns of a downturn. There might be some respite, however, if the PMI recovers to 49.0 in October as forecast.

FOMC Member Clarida Speaks – 17:00 GMT
The Federal Reserve Governor Richard Clarida is due to deliver a speech titled “The United States, Japan, and the Global Economy” at the Japan Society Special Luncheon in New York at 17:00 GMT.

The Federal Reserve FOMC members vote on where to set the nation’s key interest rates, and their public engagements are often used to drop subtle clues regarding future monetary policy. However, the NFP figures are likely to overshadow this news.

FOMC Member Williams Speaks – 18:30 GMT
The Federal Reserve Bank of New York President John Williams is due to participate in a moderated question and answer session at Rutgers University in New Jersey. Again, no major imapct is expected on the speech as traders will be pricing in the NFP figures by then.

That’s all for now, but stay tuned to our economic calendar for the live market updates and forex trading signals.

Good luck!

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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