The Bureau of Labor Statistics to Release Nonfarm Payrolls Report for June
Bitcoin (BTC) has rebounded while Asian stocks have fallen as investors eagerly await the release of the U.S. nonfarm payrolls report for June. After the ADP report showed better-than-expected private-sector hiring in the U.S., there are concerns of higher interest rates, leading to a drop in Asian stocks and notable losses in U.S. stocks. Bitcoin saw a 1% rise to $30,300, partially reversing Thursday’s slide. Gold rose to $1,914 per ounce and the 10-year Treasury note yield decreased by 6 basis points. The dollar index consolidated near 103.00.
Here are the key points:
– Bitcoin rose almost 1% to $30,300, reversing some of Thursday’s slide.
– Asian stocks, excluding Japan, dropped to a five-week low.
– U.S. stocks registered notable losses after the ADP private-sector employment report for June raised concerns of higher interest rates.
– Gold rose to $1,914 per ounce and the 10-year Treasury note yield stood at 4.02%.
– The dollar index consolidated on overnight losses near 103.00.
The nonfarm payrolls report for June, to be released by the Bureau of Labor Statistics, is expected to show an addition of 205,000 jobs in the U.S. The unemployment rate is expected to drop to 3.6% and average hourly earnings are predicted to increase by 0.3%. Traders anticipate a 89% chance of the Federal Reserve raising interest rates by 25 basis points, and a 50% chance of another rate increase later this year.
A slight miss on the nonfarm payrolls and wage growth data could bring a positive mood back to risk assets, including cryptocurrencies. The response of the Treasury yield curve will also be closely watched, as a de-inversion could lead to a drop in risk assets. An inverted yield curve has historically signaled the arrival of economic recessions.
Hot Take: Nonfarm Payrolls Report and Interest Rate Hike Expectations Impact Markets
The release of the nonfarm payrolls report for June by the Bureau of Labor Statistics has investors eagerly awaiting its impact on the market. With concerns of higher interest rates following the ADP report, Asian stocks have fallen and there have been notable losses in U.S. stocks. However, a slight miss on the nonfarm payrolls and wage growth data could bring positivity back to risk assets, including cryptocurrencies. Traders anticipate a rate increase by the Federal Reserve and are closely monitoring the response of the Treasury yield curve. Overall, the report’s data will heavily impact market sentiment and the direction of various assets.
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