Oct 04, 2022
VOT Research Desk
Analytical Viewpoint
The number of job opportunities in August was lower than anticipated, which may have sparked discussion about whether the labor market is beginning to soften.
Against a consensus prediction of 10.775 million, August JOLTS actual results were 10.053 million. The nonfarm payrolls numbers on Friday are likely to provide a clearer indication of future Fed policy, so it’s crucial to keep in mind that this is just one data point. However, markets have seized on the idea that a pivot has occurred as a result of this report, with risk rising and yields fall.
As US Treasury rates have recently decreased, the US Dollar Index (DXY) has been falling. In the week following the September FOMC meeting, it broke beyond 114.00. DXY has fallen from those highs as the Federal Reserve’s terminal rate has increased by around 30 basis points (bps).
Price has been cascading lower after breaking through support below the psychological mark of 112.00. The 110.60 level, which served as support on September 21, is now in the bears’ sights.
