INGOT Brokers AU | U.S Nonfarm Payroll & E.U GDP - August 2018

U.S Nonfarm Payroll & E.U GDP - August 2018

On Friday the 7th of September, all financial market participants will keep a watchful eye on the release of latest series of employment data from the U.S Department of Labor, the data is expected to have a drastic impact on the U.S. Dollar performance.
Analysts’ expectations show that the change in the number of people employed during the previous month will come at 191,000 which is significantly higher than the previous reading of July that showed 157,000 jobs created well below of its expectations of 193,000 jobs.
Be that as it may, the decline according to analysts is not caused by a slowdown in the economy but due to firms’ struggles to find qualified workers, this conclusion came in line with the unemployment data which showed that the jobless rate came as expected at 3.9 percent better than the previous reading of 4 percent.
Expectations for the Unemployment rate this week is to remain unchanged at at 3.9 percent.
Meanwhile, Across the Atlantic, investors will be keeping an eye on the European Gross Domestic Product (GDP) with expectations that its figure will remain unchanged compared to the previous reading which showed a 2.2 percent yearly and 0.4 percent increase quarterly.
The Eurozone GDP growth in the first two quarters has slowed to an average annual rate of 2.3 percent from a nearly 3 percent in the previous six months.
Germany, who has a fully employed economy and has grown at a rate of 2 percent so far this year, higher than the estimated 1.3 percent growth potential. As a result of the better than expected growth figures, policymakers in Berlin are pushing for an interest rate rise and bothered by a strong monetary stimulus implemented and accommodative monetary policy by the European Central Bank.
On the flip side, France, Italy, Spain, and Portugal which account for nearly half of the European economy would be devastated by Germany's groundless advocacy for the Eurozone’s rising interest rates.