HomeContributorsFundamental AnalysisU.S. Unemployment Rate To Hold Steady At 3.7%

U.S. Unemployment Rate To Hold Steady At 3.7%

The U.S. Dollar posted strong declines on the first trading day of November. The declines pushed most of its peers, such as the Euro and the British pound including precious metals higher on the day.

Economic data saw the release of the UK’s manufacturing PMI which was seen at 51.1. This was below estimates of 53.0 and down from September’s reading of 53.6.

The Bank of England held its monetary policy meeting yesterday, and as widely expected, the central bank left interest rates unchanged. The BoE signaled that it was willing to wait for the Brexit negotiations to conclude.

The ISM manufacturing PMI fell unexpectedly to 57.7 missing forecasts of a decline to 59.0. However, data showed that new orders, production, and employment components were rising at a healthy pace.

Construction spending, on the other hand, remained unchanged during September. Data showed that construction spending was at an annualized rate of $1.329 trillion. Private construction rose 0.3% during the month.

The economic data for the day started with Australia’s retail sales figures. Data showed that retail sales rose at a slower pace of 0.2%. This was followed by the quarterly producer prices index which surged 0.8% beating estimates.

The European trading session will see the release of the monthly final manufacturing PMI. The Eurozone’s final manufacturing PMI is expected to remain steady at 52.1. In the UK, the construction PMI is expected to ease to 52.0.

The NY trading session will see the release of Canada’s unemployment figures. Canadian unemployment rate is expected to hold steady at 5.9% as it hovers near a 40-year low. Meanwhile, the average jobs added during the month of October is expected to show 12.7k jobs.

In the U.S. the monthly payrolls figures are forecast to show that the U.S. economy added 193k jobs marking a modest increase from 134k jobs added the month before. The average hourly earnings are expected to rise at a slower pace of 0.2% on the month while the U.S. unemployment rate is expected to hold steady at 3.7%.

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