Poor Non-farm reading boosts FED rate cut chances
US Non-Farm Employment numbers were published this afternoon and, with a lower reading than expected, it has fuelled the chance of a second consecutive base interest rate cut by the Federal Reserve. Numbers came in at 130,000, expected reading of 156,000, which suggests the labor market in the states is beginning to struggle. GBP/USD remained relatively range bound after the figures were released, peaking at $1.2329. If you couple the job report with the US – China trade wars and global economic uncertainty it has all but confirmed a 0.25 point base cut at the next meeting later this month. Some analysts are now suggesting the Federal Reserve and Jerome Powell may look at a 0.50 point cut at the next meeting, Powell is speaking at 5:30pm (GMT) and will have a chance to give his views. Any suggestions or hints to future monetary policy moves will have an effect on the USD this evening.
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