Debt Ceiling Fears Ease, Focus Shifts To NFP Report
Good morning, it’s NFP day. The U.S. payrolls report is estimated to show a gain of 500k jobs in September that could also cement expectations that the Federal Reserve will soon start tapering bond purchases.
As for the U.S. debt ceiling, the risk of a potential default later this month had been averted (at least for now) as Congressional leaders in Washington appeared to agree to a short-term deal to raise the debt limit. However, the short-term agreement does not solve the larger problem of a looming default for the largest global economy.
The U.S. dollar was steady ahead of today’s NFP report which is scheduled for release at 12:30 UTC. If data beat expectations the greenback will further rise as the market can start to price in a more aggressive Fed rate hike cycle.
We will know more later. However, traders should be cautious and brace for higher volatility.
If you want to know how we trade the NFP release, subscribe to our signals.
We wish you good trades!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2021 MaiMarFX.
Follow us on social media: