U.S. Markets Brace for Jobs Data

James Hyerczyk from ForexHound.com at 11/06/09

The U.S. Dollar is trading lower ahead of this morning’s U.S. jobs data report.  Today’s Non-Farm Payrolls Report is expected to loss in October of about 175,000 jobs.  The key will be how investors react if the unemployment rate reaches or exceeds 10%.  Some say this figure is built into the market. 

The U.S. jobs report will set the tone for the day as it represents a way to gauge the health of the economy - namely consumer spending.  This year’s report carries a little more weight than previous reports because it will either back or refute the recent evidence that the economy has turned the corner.  Equity market traders are hoping for a good number ahead of this year’s holiday season. 

This morning the Euro, British Pound, Japanese Yen and Swiss Franc are all trading flat ahead of the U.S. jobs data. The U.S. Dollar is trading higher against the Canadian Dollar.  News that the Reserve Bank of Australia upped its GDP forecast and hinted at future interest rate hikes is helping to boost the Australian and New Zealand Dollars.

Stock Index futures are trading better.  There was a strong surge in Asia as those markets caught up to the big rally in the U.S. market.  European stock markets traded flat.  Traders want to see an improvement in the unemployment picture.  This report is very important to the retail stock sector. 

Treasury futures are trading a little better. A better than expected unemployment report is likely to put pressure on the December Treasury Bonds and Treasury Notes. 

December Gold is trading flat to higher.  This market is still finding speculative support after the rally earlier in the week was triggered by a large central bank buy from India. 

December Crude Oil is trading lower.  Traders are waiting for the jobs report.  An improvement in the jobs picture is expected to trigger a rally as this would indicate the possibility of greater demand for gasoline.