Welcome to Extreme Investor Network, where we aim to provide you with unique insights and valuable information on the Stock Market, trading, Wall Street, and more. Today, we are delving into expert views on the US labor market and the potential Fed rate path.
AMP Head of Investment Strategy and Chief Economist Shane Oliver recently commented on the US Jobs Report, noting that while August payrolls increased by 142k, there were some concerning trends. Unemployment fell, but overall wages growth was soft. This mixed picture may not be weak enough to prompt a Fed rate cut, despite some support for one from Fed officials Waller and Williams.
Looking ahead, the Michigan Consumer Sentiment Index, set to be released on September 13, will play a crucial role in influencing US dollar demand. Economists are anticipating an increase in the Index from 67.9 in August to 68.0 in September. Rising consumer confidence could lead to increased consumer spending, potentially boosting the US economy and impacting Fed rate decisions.
The USD/JPY pairing may face volatility in the short term, with US inflation and labor market data playing pivotal roles in its trajectory. Expectations of a 50-basis point Fed rate cut in September could push the USD/JPY below 140, while economic indicators from Japan will also impact its performance.
As an investor, it is important to stay informed and adapt your trading strategies accordingly. Monitor real-time data, central bank views, and expert commentary to make informed decisions in the FX markets.
When looking at the USD/JPY price action, it is evident that the pair remains below the 50-day and 200-day EMAs, confirming bearish trends. A break above the 143.495 resistance level could signal a move towards 145, while a drop below the 141.032 support level could lead to a return to sub-140 levels.
Stay tuned to Extreme Investor Network for the latest analysis, news, and expert insights to navigate the twists and turns of the Stock Market and FX markets. Happy trading!