Evaluating the Importance of US NFPs and Scenarios for Markets

Talking Points:

• The consensus for the October NFPs is 185,000 jobs added and a downtick in unemployment to 5.0 percent

• US labor statistics tap one of the financial systems most influential fundamental themes: Fed forecasting

• With the USDollar just off a 12-year high and the S&P 500 inches from a record, the tension is high

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The markets are on the verge of exceptional highs and key event risk is scheduled for release. The United States BLS labor report is one of the financial media's favorite events. The data is a trader favorite, easily interpreted and frequent volatility spark. Yet, now more than ever, market participants need to account for the depth of this data to account for its influence on their exposure. Both the Dow Jones FXCM Dollar Index and S&P 500 stand just off major highs (12-year and record respectively) and a renowned event risk is looking distinctly like a capable catalyst. Yet, the interpretation of the data as a driver requires an appreciation of why it is important. Further, the undercurrent of fundamentals means certain scenarios can prove the genesis for major trend development while others can be a false harbinger of volatility without drive. We discuss the October NFPs event risk and market potential in detail in today's Strategy Video.

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