In a move that should surprise no one, Donald Trump has fired the director of the Bureau of Labour Statistics (BLS). This announcement coincided with the release of the most recent Non-Farm Payroll (NFP) numbers and they were wildly undershooting expectations. This decision comes as the U.S. economy is under the microscope, with employment reports due from New Zealand and Canada. The non-farm payroll data reported today confirmed a dramatic reversal in the pace of job growth. Here’s how that news sparked an immediate panic in the financial markets.
The Bureau of Labor Statistics delivers crucial labor market statistics that inform economic decision-making across the country. Investors and policymakers alike watch its NFP report with bated breath for useful information. In the wake of these much worse-than-expected releases, the U.S. dollar (USD) began a quick descent. This downturn was reflected in the stock markets, which crashed on Friday, with the S&P 500 index showing a stark decline in its chart.
Market analysts noted that the poor performance of the NFP figures could have far-reaching implications for economic policy and market stability. The timing of Trump’s decision to fire the BLS chief raises questions about his administration’s confidence in the accuracy of these crucial employment statistics.
The U.S. Purchasing Managers’ Index (PMI) follows at 10 a.m. New York time. Of course, this announcement is already having a big effect on market sentiments. Analysts are particularly attuned to how all these figures will mesh with the recent geotagged employment data. They’re excited to discover what this relationship could indicate for overall economic trends moving forward.
Alongside U.S. employment reports, analysts are likely to keep a close eye on employment data from New Zealand and Canada. Depending on how the market interprets the reports, these broader implications may ultimately influence trading strategies in all major currency pairs, such as GBP/USD, EUR/USD and USD/JPY.
Given the market turmoil, gold has been an alluring asset for traders looking to escape volatility. Today’s gold (XAU/USD) daily chart reflects clearer technicals and offers more current range trading opportunities. Likewise silver (XAG/USD) is another market under consideration for possible trading techniques within this volatile backdrop.
The daily charts for all major currency pairs — GBP/USD, USD/JPY, EUR/USD, AUD/USD, NZD/USD, CAD/JPY etc — are covered extensively in the Weekly Market Outlook. As the economic landscape continues to change dramatically, traders should stay alert and be able to easily adapt on the fly.
This loss across the S&P 500 as a whole has sparked new fears over investor confidence and positive economic growth potential in the future. As financial markets continue to react to these economic indicators, stakeholders are left grappling with uncertainty regarding future monetary policy adjustments.