The steady US Dollar Index after surging to higher levels post FOMC decision wherein an interest rate was hiked by 75bps as expected led major equity markets & commodities to trade on lower side. Besides this, the slowing growth progress, high inflation rate & rising geopolitical tensions remains vital for markets.

However, the current scenario showcases a pullback rally in equities & other global instruments as optimism looms over chances of monetary easing from major Central Banks.

The market will be monitoring an outcome of U.S Non-farm payroll which to be issued on October 07, 6.00pm IST, Friday & will show a change in the number of employed people during the previous month, i.e. September, excluding the farming industry.

The report expects a drop-down in employment figure by 248K lower than previous reading of 315K while Unemployment Rate may remain steady at 3.7%.

Below is the Graph showing the changes in Employment data since last three months.

Above graph shows mild progress in employment sector in last three months; however the recent forecast may drag down the curve.

The estimates of U.S ADP Employment Change rose to 208K whereas the Unemployment Claims climbed to 219K. These mixed data may create ambiguity towards today’s Non-farm Payroll figures.

If NFP data comes out to be stronger, then the possible effect can be – strong US Dollar Index, soft precious metals & stronger global indices. Other way round, if data shows downbeat results, then downside in indices & buying bias in Gold can be noticed.

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