The US Non-Farm Payrolls; What To Expect

The US Non-Farm Payrolls; What To Expect

All eyes will be on the US Non-Farm Payrolls today! The US Jobs Report will be released at 12:30 p.m. (GMT).

Why Is This Important?

The Non-Farm Payrolls track the change in the number of people employed by the US in manufacturing, construction and goods companies. It does not include farming industry employment. The US Jobs Report is so important for the upcoming Fed decisions.

Financial markets remained worried as the death toll from the coronavirus outbreak. U.S President Donald Trump has warned Americans to brace for a "rough two weeks” 

Investors rushed to the security of the world's most liquid currency as the coronavirus pandemic caused massive disruptions to global trade. Safe Havens; Yen Gold and US Dollar still strong.

The number of Americans applying for initial unemployment benefits surged to a new record 6.65 million last week

Moreover, the U.S. private sector shed 27,000 jobs in March, according to a report by payrolls processor ADP, before the worst of the impact of the coronavirus pandemic on the U.S. labor market was seen. The Coronavirus outbreak is on getting worse.

March US Nonfarm Payrolls is expected to drop -100K after rising 273K the previous month. The Unemployment Rate is expected to rise to 3.9% from 3.5%. Average hourly earnings will also be significant and are expected to be 0.2% which is lower than the previous month's number of 0.3%. 

In addition to US Jobs Report, focus on US ISM Non-Manufacturing PMI. The index is based on surveyed purchasing managers, excluding the manufacturing industry. The US ISM Non-Manufacturing PMI is expected to ease to 44.0 from the previous month's reading of 57.3. A reading below 50 indicates a contraction in the sector.