KUALA LUMPUR, MALAYSIA – Media OutReach – October 5, 2023 – New hiring in the United States is expected to increase by 150,000 jobs in September and unemployment is expected to fall to 3.7%, which could help the Fed continue to maintain its interest rate paused.
The United States is expected to create 150,000 jobs and reduce unemployment to 3.7% in September.
The improving labor market situation will encourage the Fed to be hawkish. In this case, the main upside target for USDJPY is 150.00 to 152.00.
The U.S. Labor Department is expected to announce Friday that the United States created 150,000 jobs in September, according to economists polled by Reuters, up from 187,000 in August. They also expect the unemployment rate to fall from 3.8 percent in August to 3.7 percent in September.
This data will be a critical part of the Fed’s rulemaking, as it will assess the current state of the U.S. economy and the appropriate conduct of monetary policy. An improving labor market will give the U.S. Fed reason to be hawkish, while a decline in new jobs will suggest that the U.S. labor market is not strong enough, prompting the central bank to be more dovish in its decisions and declarations.
“According to August data, the labor market is returning to normal with a gain of 187,000 jobs, and this trend is expected to continue in September,” said Octa financial markets analyst Kar Yong Ang. “Such improvement in the US labor market will support the US dollar,” he added.
The Fed’s recent announcement that interest rates will remain “high for longer” has rattled global markets, strengthening the US dollar. It could further strengthen if forecasts for the American labor market are confirmed. For FX market participants, this may mean that USDJPY is likely to continue rising, breaking through the critical resistance level of 150.00. The main target is 150.00 to 152.00.
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