The Labor Department’s closely watched the last US employment report on Friday before the fiercely contested Nov. 3 presidential election.
Joe Biden, the Democratic Party nominee, blames the economic turmoil on the White House’s handling of the pandemic. Republican President Donald Trump is likely to see the fifth straight month of job gains as a sign of recovery.
Jobs will gain for a fifth straight month, a sign of progress for an economy that plunged into recession in February. Nonfarm payrolls likely rose by 850,000 jobs last month after increasing 1.371 million in August. September’s anticipated employment gains would be the smallest since the job’s recovery started in May.
However, the relentless pandemic leaves many at the risk of permanent unemployment. As the pandemic drags on, furloughed workers are in danger of losing their jobs permanently. There were 3.4 million people who had lost their employment for good in August. These people account for 25% of the 13.6 million unemployed.
New coronavirus cases are rising, with a surge expected in the fall. This could lead to some restrictions being imposed on businesses in the services sector.
The unemployment rate is forecast falling to 8.2% in September from 8.4% in August. The jobless rate has declined from a high of 14.7% in April. Average hourly earnings are forecast rising 0.2% in September after increasing 0.4% in August. That would lift the annual wage growth to 4.8% from 4.7% in August.
In other news, President Trump and first lady Melania Trump have tested positive for Covid-19. The diagnosis ends the virus immunity that markets have largely enjoyed. U.S. stock indexes fell while the U.S. dollar index rose.
START TRADINGForex – Last US Employment report last before presidential election
U.S. President Donald Trump’s positive test for COVID-19 spooked investors, just a month out from November’s presidential election. Now investors are in the unusual position of betting on the health of the president. A wave of risk aversion swept markets. The last US Employment report before the presidential election became a secondary issue after the news.
The dollar index tacked on 0.1% but remains down 0.8% for the week – its softest weekly performance since late August.
The yen made its sharpest gain in more than a month to reach a one-week high of 104.95 per dollar. The Japanese currency was last up 0.4% on the day.
The dollar rose 0.28% against the Swiss franc at 0.9218 franc, after falling as low as 0.9191 franc overnight.
The greenback rose as much as 0.7% on the risk-sensitive Australian dollar. The Aussie recovered about half its losses by the end of the Asia session and was last down 0.2% at $0.7165.
The New Zealand dollar was down 0.1% at $0.6645.
Both lost half a percent against the yen but lifted from session lows.
Losses in the euro were more modest and it was last down 0.2% at $1.172.
The pound advanced after Downing Street announced British Prime Minister and European Commission President would meet on Saturday to discuss next steps in acrimonious Brexit talks. It was last 0.2% higher at $1.2913.
The pound was last trading up 0.4% versus the euro at 90.78 pence.
Elsewhere, oil prices fell, with Brent crude LCOc1 down 2.6% at $39.85 a barrel at 0724 GMT.
Gold rose, as investors flocked to safer assets.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money