Employment Data Next Friday

Datos de empleo el próximo viernes

Employment Data Next Friday

Investors will focus their attention on the non-farm employment data scheduled for release on Friday,
as they look for new indications of when the Federal Reserve might begin lowering interest rates.











United States:

Economists expect the U.S. economy to have added 189,000 jobs in June, following a larger-than-expected gain of 272,000 jobs in the previous month, highlighting the resilience of the labor market.

Earlier this month, the Federal Reserve kept interest rates unchanged, postponing the start of rate cuts potentially until late December, as officials seek more compelling evidence that inflation is receding to the target or signs of a slowing labor market.

Before the non-farm employment data release, Tuesday’s report is expected to show another decline in job openings in May, indicating that companies are successfully filling vacancies.





Economic Contraction: The Japanese government announced a deepening contraction of the Japanese economy in the first quarter, reducing the likelihood of the Bank of Japan raising interest rates in July.

Additionally, the rise in U.S. 10-year bond yields to their highest levels in three weeks negatively impacted the value of the Japanese yen against major currencies. As a result,
the yen’s exchange rate fell against a basket of major and minor currencies on Monday,
including a drop to its lowest level in 38 years against the U.S. dollar,
following the release of unexpected economic data from Japan.











Rising Inflation: High inflation in Australia is putting significant pressure on the Australian central bank.
The likelihood of Australian interest rate cuts this year has diminished,
with prices in Australia rising to their highest levels this year.
This has increased inflationary pressures on policymakers at the Reserve Bank of Australia,
which had already considered raising interest rates at its last meeting.

As a result, market bets on potential Australian interest rate cuts this year have completely dissipated, making the Australian dollar one of the best investment opportunities currently in the foreign exchange market.




Employment Data Next Friday