Market Brief January 5th: First Nonfarm Payrolls for the year

05 January, 2018 - 07:06AM

European Union

EUR, 10:00 a.m. GMT, CPI (YoY) (Dec) P – preliminary CPI for the month of December is expected to be slightly lower at 1.4% versus 1.5% from last’s year’s reading. The Consumer Price Index measures the change in the price of goods and services from a consumer point of view. If today’s reading is higher than projected, this could push the euro into higher highs. Conversely, a surprising number showing weakness could signal bearishness for the currency.

United States

USD, 13:30 p.m. GMT, Nonfarm payrolls (Dec) – the highly expected event is finally here. All eyes will be on the number coming out. Projections show an expected decrease in the number of people employed in the non-farm, private employment at 190K in December versus 228K for the previous month.

USD, 13:30 p.m. GMT, Unemployment Rate (Dec) –market analysts expect no changes in the unemployment rate for the month of December, i.e. they see the rate remain at 4.1%, same as last time. If there are changes and the report shows an increase that would be a bearish sign for the US dollar. And vice versa, a decrease in the unemployment rate would be a positive sign for the economy and thus for the currency itself.

USD, 15:00 p.m. ISM Non-manufacturing PMI (Dec)- manufacturing activity plays a key role in the formation of Gross Domestic Product of the country. For the month of December, market analysts expect a minor increase of activity at 57.8 versus 57.4 from the previous period. If today, the reading shows a higher performance, this should be read as a positive sign for the dollar. However, bear in mind that the market might have already priced in an increased performance in the sector and thus there could be a potential reverse reaction. A weaker than projected reading would be a signal that performance is slowing down (with potential bearish impact on the currency).

Ethereum

On Thursday, we saw Ether surge to new heights. The cryptocurrency traded at a record $978 and for the time being looks ready to charge further. Interest in the asset is growing as well with a strong 125% increase marked since Jan 1st, thus standing at $ 5.83 billion.
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