NFP report unlikely to cause more than a short-term reaction following the publication – Commerzbank

The US labor market data is due for publication today. However, it might be overshadowed by the central bank decisions which we saw this week, economists at Commerzbank report.

US labor market data overshadowed by events

“Today’s report is not likely to be suited to challenge the Fed’s expectation of Wednesday that the end of the rate hike cycle should have been reached. Not even a strong labor market report is likely to be sufficient to challenge the entire picture of a slowly cooling US economy so the market will probably stick to its expectations of Fed rate cuts.”

“Even though the labor market report is always good for a surprise, it is unlikely to cause more than a short-term reaction following the publication – if that.”

See – US Nonfarm Payrolls Bank Preview: Smaller, but still positive change in employment