SP500 Futures, U.S. Dollar Move Higher After Non Farm Payrolls Report

Key Insights

• U.S. economy added 236,000 jobs in March. 
• SP500 futures moved above the 4115 level. 
• U.S. Dollar Index tested the 102.30 level after the release of job market reports.

On April 7, U.S. released Non Farm Payrolls report, which indicated that U.S. economy added 236,000 jobs in March.

U.S. stock markets are closed today, but SP500 futures are moving higher after the release of the Non Farm Payrolls data. Currently, SP500 futures are trying to settle above the 4115 level. Traders ignore recession worries and focus on the healthy job market.

U.S. Dollar Index tested the 102.30 level after the release of the Non Farm Payrolls data. The economy continues to add jobs, which means that Fed may be a bit more hawkish than previously expected. This is bullish for the American currency. It should be noted that trading volume is lower than usual due to the Good Friday holiday, so it remains to be seen whether traders are ready for big moves in the forex markets.

Gold and silver markets are closed today, so we’ll see their reaction to the U.S. jobs data on Monday.

The key question is whether Non Farm Payrolls data will lead to a material change in Fed policy outlook. FedWatch Tool indicates that there is a 70.7% probability of a 25 bps rate hike at the next Fed meeting in May. Traders expect that it will be the last hike. The federal funds rate is projected to decline from the peak of 500 – 525 bps to 425 – 450 bps by the end of the year.

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