October 4, 2022

Incoming US Jobs Data

Michael J. Donoghue
Incoming US Jobs Data

According to this morning’s Job Openings and Labor Turnover Survey (JOLTS) results from the US Bureau of Labor Statistics (BLS), job openings at the end of August were far lower than expected. Just over 11 million employment opportunities were forecast, while the actual number barely exceeded 10 million. This incoming US jobs data, which verifies that America’s labor market is indeed cooling, has likely fed into bearish momentum for the US Dollar this morning.

However, this is not the only crucial labor-related USD news that traders will have to work with this week. Tomorrow at 8:15 am Eastern Time, Automatic Data Processing, Inc. will release their Non-Farm Employment Change (NFP) estimates for September, and on Friday at 8:30 am ET, the BLS will reveal September’s changes in Average Hourly Earnings and NFP, as well as the new US unemployment rate.

How Might This Be Significant?

These have the potential to be huge fundamental catalysts, which may still favor USD bulls despite low JOLTS results; this is because, as Fed Chair Powell has recently pointed out, US job openings nearly outnumber those seeking work two-to-one. Due to this disparity, we could potentially encounter a situation where job openings continue to decline while wages and new hires keep increasing nonetheless, at least for a time.

Possible Pairs to Trade

For those who are hoping to go long on USD, the following pairs are rated favorably by the EdgeFinder, A1 Trading’s market scanner that offers helpful fundamental analysis, sentiment analysis, and more. They are listed in order of favorability, along with their respective ratings and biases/signals. As you can tell from each of the corresponding charts, the recent selling pressure for the Greenback might provide USD bulls with some optimal points of entry, judging from the resistance levels being hit.

1) EUR/USD (Earns a -5, or ‘Sell’ Rating)

Incoming US Jobs Data
Incoming US Jobs Data

2) GBP/USD (Earns a -4, or ‘Sell’ Rating)

Incoming US Jobs Data
Incoming US Jobs Data

3) USD/JPY (Earns a 4, or ‘Buy’ Rating)

Incoming US Jobs Data
Incoming US Jobs Data

4) AUD/USD (Earns a -4, or ‘Sell’ Rating)

Incoming US Jobs Data
Incoming US Jobs Data

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