Money News Overview Friday 6th September: US labour market report in focus

Investor sentiment remained cautious yesterday. Overall, markets were rather quiet, as markets prepare for today's US labour market report.

Investor sentiment remained cautious yesterday. Overall, markets were rather quiet, as markets prepare for today’s US labour market report.

Data-wise, the US non-manufacturing ISM rose to 51.5 in August, beating expectations of a drop to 51.1.

Meanwhile, the latest initial jobless claims totalled 227k (compared to 230k expected). ADP employment increased by only 99k in August, significantly below the consensus of 145k.

However, the link between ADP and government payroll statistics is rather poor. Against this backdrop, the dollar dropped following yesterday’s ADP data.

Looking ahead, the main attention will be on theUS jobs market report. Payrolls are expected to increase by 160k, while the unemployment rate is forecasted to fall to 4.2%.

The announcement provides some event risk for the dollar, as a negative report could boost market expectations for a 50 basis point rate decrease by the Fed later this month.

For additional insights on how this could affect your business or to capitalise on market volatility – please reach out to speak to one of our experts.