Markets & Investing
The US’s Job Situation and a Volatile Currency Market Set The Agenda of a ‘Quieter’ Week
02 Oct 2018
“This week is set to be quieter for the markets, with much of the focus on Friday’s economic release,” forecasts David Jones, Chief Market Strategist at Capital.com when the first week of October is about to commence. Nonetheless, for the market expert, there are some doubts of whether the end of the week will end as smooth as it started, with some important figures to be released by then.
As usual by the beginning of every week, tradersdna.com have brought the analyst to share his insights about how the market will respond to the monthly US Non-Farm Payrolls update, if the currency markets will react to the upcoming Conservative annual conference in the UK or whether the oil markets can once and for all stabilise after weeks of non-stop surge.
The Update on the American jobs situation
This is the monthly US Non-Farm Payrolls – the update on the American jobs situation. Market expectations are for continuing good news here with around 190,000 jobs expected to have been added during September. This trend is certainly doing US stock markets no harm at the moment – despite the occasional wobble and sell-off, investors seem more than happy to use any weakness as an opportunity to buy into US shares.
Another volatile week for currency markets
Looking at currency markets it is likely to be another volatile week for the pound as the UK’s governing party, the Conservatives, start its annual conference. As usual any speeches that hint at progress or lack of it – or continued trouble with the leadership figures is going to be closely examined and market reaction will be seen swiftly in GBP/USD. The pound did send the first half of last week trying to recover but ended around 1.30 versus the US dollar, its lowest since mid-September.
Oil Market: Are we getting closer to a $100 a barrel?
Oil is another market that investors should be paying attention too. Last week Brent Crude oil came very close to its best levels since November 2014, while US crude is less than a dollar away from the highs set in early July at around $74. Once again this has started chatter of whether $100 a barrel is possible. Considering the oil price has risen by around 70% since the summer of 2017, another 25% on the price from here would surely have negative implications for the global economy. Perhaps the creeping oil price will be the factor that knocks at least some of the enthusiasm out of US investors – although at the moment this has been taken in their stride.
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