ABD September nonfarm payrolls data was announced today and it came in well below expectations.
The actual figure was 29 thousand. The expectation was approximately 85–90 thousand, while August had been reported as +162 thousand.
In September, a rate hike was made, and the strong August data had increased the likelihood of further tightening.
This weak print could reduce the pricing for another rate hike in October. The signal that the labor market is cooling—despite inflation still being above the target—reinforces the view that further tightening may not be necessary.
The dollar and bonds: A figure below expectations generally weakens the dollar and pulls U.S. Treasury yields lower. A decline in short-term rates may come to the fore on the yield curve. #fed
The actual figure was 29 thousand. The expectation was approximately 85–90 thousand, while August had been reported as +162 thousand.
In September, a rate hike was made, and the strong August data had increased the likelihood of further tightening.
This weak print could reduce the pricing for another rate hike in October. The signal that the labor market is cooling—despite inflation still being above the target—reinforces the view that further tightening may not be necessary.
The dollar and bonds: A figure below expectations generally weakens the dollar and pulls U.S. Treasury yields lower. A decline in short-term rates may come to the fore on the yield curve. #fed