Job Openings Rise To 11 Million, U.S. Dollar Tries To Rebound From Session Lows

Key Insights

• JOLTs Job Openings have surprisingly increased to 11 million. 
• ISM Manufacturing PMI declined from 48.4 to 47.4.
• S&P 500 Global Manufacturing PMI improved from 46.2 to 46.9.

JOLTs Job Openings Exceed Analyst Expectations

On February 1, U.S. reported that ISM Manufacturing PMI declined from 48.4 in December to 47.4 in January, compared to analyst consensus of 48. ISM Manufacturing PMI reached levels that were last seen back in May 2020, during the acute phase of the coronavirus crisis.

Traders also had a chance to take a look at the JOLTs Job Openings report for December. The report indicated that the number of job openings increased to 11.01 million in December, compared to analyst consensus of 10.25 million.

Earlier, traders focused on the final reading of the S&P 500 Global Manufacturing PMI report for January. The report showed that Manufacturing PMI improved from 46.2 to 46.9, compared to analyst consensus of 46.8.

The surprising increase in the number of job openings may have served as the key catalyst for markets, but it remains to be seen whether traders are ready for big moves as the Fed will announce its Interest Rate Decision in a few hours.

U.S. Dollar Rebounds From Lows After Job Openings Data

U.S. Dollar Index moved away from session lows after the release of the better-than-expected JOLTs Job Openings report. The situation in the labor market remains healthy, which means that the Fed has plenty of room for maneuver in case it wants to push the federal funds rate to higher levels.

S&P 500 moved lower amid fears of a more hawkish Fed. However, the move was not significant as traders were waiting for the Fed decision. Most likely, trading will stay choppy in the next few hours.

Gold declined as dollar moved higher. However, gold remained in a tight $1924 – $1932 range as gold traders were waiting for the Fed decision.

For a look at all of today’s economic events, check out our economic calendar.