US: NFP rebound supports gradual recovery view – Standard Chartered

💡 DMK Insight

The unexpected rise in US Nonfarm Payrolls is shaking up market expectations right now. With job gains accelerating and the unemployment rate dipping, traders need to reassess their positions, especially in forex and equities. This could signal a stronger economy, potentially prompting the Fed to reconsider its interest rate strategy. If the labor market continues to strengthen, we might see upward pressure on the dollar, which could impact currency pairs like EUR/USD and GBP/USD. Keep an eye on the 1.10 level for EUR/USD; a break below could trigger further selling. But here’s the flip side: if this data leads to fears of aggressive rate hikes, volatility could spike across markets. Traders should monitor the upcoming FOMC meeting for any hints on monetary policy shifts. The real story is how this labor data could ripple through sectors sensitive to interest rates, like real estate and utilities. Watch for reactions from institutional players who might reposition ahead of these potential changes.