Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Today NFP report for the month of March is to be published at 12:30 GMT from US.
What is NFP report?
- NFP or non-farm payroll report is the monthly statistics on labor condition in the US released by US department of labor statistics. The report comprises goods, construction and manufacturing sector companies.
- This report influences the financial markets deeply across asset class.
Key highlights –
- Last month’s report was a strong one with 235,000 gains.
- Change in private payroll has been 227,000 last month. Today expected 170,000.
- Total payrolls are expected at 180,000.
- The most vital component is wage growth, which has been showing some strength. Today it is expected to rise by 0.2 percent on monthly basis and 2.7 percent annually.
- Labor force participation rate still subdued at 63 percent.
- Unemployment rate is expected to remain same at 4.7 percent.
- Underemployment rate is expected to fall further from current 9.2 percent
Impact –
- Volatility is sure to be on the card, post release.
- Any number above 250,000 would be considered as very good and investors will further push the odds of a rate hike for 2017. However, the major impact is not likely to be on the dollar but on stock markets, which would rise on risk affinity.
- Any number below 170,000 will make investors scratch their heads, especially as the ADP reported solid gains.
A better report would be better for equities and especially for different sectors. Higher jobs gains in the energy sector likely to be dampening factor for the oil price.
Overall, the jobs report is unlikely to be a mega mover for the dollar as the market is focused on geopolitical risks, especially after US missile strikes in Syria last night. However, weaker jobs report would be a bigger mover for the dollar than a strong one. The dollar index is currently trading at 100.75, up 0.14 percent so far today.
