We just don’t have the ADP Jobs Report release scheduled for 2:15 PM CEST. The ADP report is expected to show an increase of 200,000 jobs in November, a smaller job addition than in October, when the ADP posted +239,000 and the NFP posted +261,000.,
The Fed is closely watching developments in the labor market, as the strength of the labor market is one of the main reasons the Fed feels comfortable tightening its activity with a focus on inflation.
#NASDAQ Schedule; After bullish momentum from the previous LVA, price yesterday reached POC+HVA for the second time this week, which finally manages to delay and hold as support before a longer continuation:
#NASDAQ Schedule; After a bullish momentum from the previous LVA, price yesterday reached POC+HVA for the second time this week, which finally manages to delay and hold as support before a longer continuation.#trading # if so #Market #NASDAQ100 #scalping pic.twitter.com/6p52fH3r3F
– #SalaParaTraders (@SalaParaTraders) August 11, 2022
Weakness in the labor market, although expected and forecast by the Fed for next year, may give the Fed reason to slow down the tightening process.
However, it must be said that ADP’s track record in forecasting NFP data is quite poor and the reports themselves rarely trigger major market moves unless large deviations from expectations are reported. On the other hand, a volatile night is almost guaranteed when Powell takes the stage. The Fed chairman is giving a speech at the Brookings Institution in Washington and the topic of the speech is “Economic Outlook, Inflation and the Labor Market,” which means it is highly unlikely to happen at all.
The Nasdaq-100 (US100) is the major US index that sees the biggest reaction to monetary policy developments, so it could see some wild moves overnight.
The index recently made another unsuccessful attempt to break a medium-term downtrend line and pulled back below the 11,625 support area yesterday. However, a breakout attempt above this area can be detected today.