The US Bureau of Labor Statistics (BLS) on Tuesday had a job opening and Labor Turnover Survey (JOLTS) reported in the US Bureau of Labor Statistics (BLS) on the final working day of August 7.22 million. The reading came above the 7.2 million market expectation after the 7.2 million inauguration reported for July.
BLS said in its press release, “During the month, both fare and total isolation turned into 5.1 million.” “Within separation, both quits (3.1 million) and trimmed and discharge (1.7 million) had changed slightly.”
Market reaction for job opening data
This data failed to trigger a noticeable market response. At the press time, the US dollar index was 0.1% a day at 97.85.
US dollar price this week
The table below shows a percentage change of US Dollar (USD) against major currencies listed this week. The US dollar was the weakest against Japanese Yen.
| USD | EUR | Gbp | JPY | Paaji | Worship | Aristocratic federal | Chef | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.24% | -0.30% | -1.09% | -0.17% | -1.07% | -0.23% | -0.08% | |
| EUR | 0.24% | -0.08% | -1.02% | 0.06% | -0.83% | 0.00% | 0.15% | |
| Gbp | 0.30% | 0.08% | -0.83% | 0.13% | -0.82% | 0.08% | 0.22% | |
| JPY | 1.09% | 1.02% | 0.83% | 0.97% | 0.07% | 0.76% | 1.08% | |
| Paaji | 0.17% | -0.06% | -0.13% | -0.97% | -0.86% | -0.06% | 0.08% | |
| Worship | 1.07% | 0.83% | 0.82% | -0.07% | 0.86% | 0.85% | 0.99% | |
| Aristocratic federal | 0.23% | -0.01% | -0.08% | -0.76% | 0.06% | -0.85% | 0.29% | |
| Chef | 0.08% | -0.15% | -0.22% | -1.08% | -0.08% | -0.99% | -0.29% |
The heat map shows a percentage change of major currencies against each other. The base posture is picked up from the left column, while the quotation posture is raised from the top line. For example, if you choose a US dollar from the left column and go to the Japanese yen along the horizontal line, the percentage change in the box will represent USD (Aadhaar)/JPY (quotation).
This section below was published as preview Shock Job opening data on 08:00 GMT.
- The US Jolts data will be closely viewed on Friday before the release of the September Nonform payroll report.
- The job opening in August is estimated to increase by 7.2 million.
- Labor market situation is an important factor for Fed officials while determining interest rates.
Job Opening and Labor Turnover Survey (Jolts) will be released by the United States (US) Bureau of Labor Statistics (BLS) on Tuesday. The publication will provide data about changes in the number of job openings in August, with the number of retrenchment and quits. The markets are expected to open in markets in markets compared to the reading of 7.181 million in the previous month.
Jolts data is examined by market participants and Federal Reserve (Fed) policy makers as it can provide valuable insight into the dynamics of supply-mang in the labor market, which is a major factor affecting wage and inflation. The opening of the job has been steadily declining since reaching 12 million in March 2022, indicating a stable coldness in labor market conditions. In January this year, the number of job openings exceeded 7.7 million before March declined by 7.2 million. Since then, there was a job opening opening for two consecutive months to reach 7.7 million in May. Nevertheless, the summer months exposed another softening in labor, which revealed below 7.2 million in July.
What is expected in the next jaults report?
The job opening in August is expected to increase by 7.2 million. Fed policy makers are growing loudly in pointing their concerns on the outlook of the labor market.
Following the decision to reduce the policy rate in the September policy meeting by 25 basis points, Fed Chair Jerome Powell admitted that the benefit of the job was running below the breechevane rate. On more dovish note, Fed Governor Michelle Boman argued Recent downward modifications for employment figures suggest that the fed is even further behind the curve on the interest rate cut compared to the first estimated. Similarly, Jeffrey Shamid, President of Canasus City Fed, said that the rate of September was cut. Suitable for compensation of risks for labor market But it was added that recent data points to rising risks.
The CME Fedwatch Tool suggests that the 30% probability of a policy hold in December about 25 BPS rate cuts almost completely completely in the market. Jolts with less than 7 million readings can meet an important negative surprise in job opening data, meet the expectations for cuts in two more rates and weigh on US dollars (USD) with immediate response.
Conversely, a reading near or above the market’s general consensus can help the USD stay flexible against its peers, at least until the official employment report for September’s nonform parole September.
When will the report of jaults be released and how can it affect Eur/USD?
The job opening will be published on Tuesday at 14:00 GMT. The European session’s leading analysts in FXStter, Aren Sangzer, share their technical approaches for EUR/USD:
“Near-term technical approaches indicate a lack of directional speed. The relative power index (RSI) indicator on the daily chart is close to 50 and the pair trades around 20-day and 50-day simple moving averages (SMAS).”
“On the negative side, the 100-day SMA creates a significant support level before 1.1530 to 1.1600 (February-September uptrend’s fibonacci 23.6% retracement) and 1.1300 (Fibonacc 38.2% Retressment).
(This story was updated on September 30 to 14:09 GMT to change the final-mint’s consensus from 7.1 million to 7.2 million.)
Fed fake
The monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and promote complete employment. To achieve these goals, its primary tool is to adjust interest rates. When prices are rising very quickly and inflation is above the 2% target of the Fed, it increases the interest rates, increasing the cost of borrowing throughout the economy. This results in a strong US dollar (USD) as it makes the US a more attractive place to park its money for international investors. When inflation is reduced by 2% or the unemployment rate is very high, the fed can reduce interest rates to encourage borrowings, which weigh on greenback.
The Federal Reserve (Fed) holds eight policy meetings in a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and takes a monetary policy decision. The FOMC consists of seven members of the twelve Fed Officers-Board of Governors, Chairman of the Federal Reserve Bank of New York and four of the remaining eleven regional Reserve Bank Presidents, serving one year terms on a rotating basis.
In extreme conditions, the Federal Reserve can resort to a policy called quantitative ease (Qi). Qi is the process by which the fed greatly increases the flow of credit into a stuck financial system. It is a non-standard policy measure that used during crisis or when inflation is very low. It was the weapon of Fed’s choice during the great financial crisis in 2008. This includes fed printing more dollars and is to use them to buy high grade bonds from financial institutions. Qi usually weakens the US dollar.
Quantitative Tightening (QT) is the reverse process of Qi, which stops buying bonds from Federal Reserve Financial Institutions and to buy new bonds, it does not re -establish the principal with mature bonds. This is usually positive for the value of the US dollar.
