US NFP Part 2: Special Day And Special Report


*The bar is set low for today's US NFP data
*Higher volatility is sitting on markets' door step



Trading volume is thin in the markets today and investors are cautious ahead of the US NFP data. The US markets closed lower yesterday but all the major indices such as S&P500, the Dow Jones and the Nasdaq index are still holding on to some solid gains. Today’s upcoming US NFP number can change the game. The scorecard is shown below


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So far, the tone is set for a somewhat weak number. In other words, the bar is set low and if the economic numbers fail to beat the forecast or impress the markets, we could see the higher volatility in the markets. As we said yesterday, a weak number is going to anchor the expectations for another interest rate cut by the Fed.

Equity markets are likely to move higher on the back of that and so is the gold price. A number that matches the expectation may not be able to push the equity markets higher. If the overall data is  strong then it means that we are pretty much done with interest rate cuts for this year and the gold price may move lower.

 



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