US Employment Report to Guide the Markets

Forex News

The period of market uncertainty continues, but European shares are expected to bounce back today. Major global stock indices have showed significant losses this week. FTSE dropping almost 4% this week so far, the DOW more than 3% and the DAX more than 6%.

The market participants are focused on data on the US labor market, which will be released today. Nonfarm payrolls probably increased by 200.000 jobs last month, after surging 250.000 in October. The unemployment rate is forecast steady at near a 49-year low of 3.7%. Average hourly earnings are seen up 0.3% in November after gaining 0.2% in October.

A strong employment report would allay fears about the economy's health and increase the probability of the Fed raising interest rates more than once next year. The US central bank is expected to increase borrowing costs on December 18-19 for the fourth time this year. Meanwhile, markets are pricing in one rate hike from the Fed in 2019, compared with expectations for possibly two rate hikes a month earlier.