How Are Markets Reacting After the US November Employment Data?

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How Are Markets Reacting After the US November Employment Data?

The U.S. Non-Farm Payrolls data revealed an increase of 227,000 in November, exceeding expectations and indicating that the labor market in the U.S. remains robust. Following the stronger-than-expected employment figures, expectations for interest rate cuts from the Fed have increased, which is critically important for the Fed's monetary policy. The strong economic outlook strengthens the view that the bank has more room to lower interest rates, while the dollar index quickly retreated after the employment data.

Currently, the market is pricing in a nearly 90% probability of a rate cut by the Fed this month, a significant rise from the previous week's 66%. The dollar has declined against 6 major currencies during the last hour, furthering its downward trend since Tuesday, dropping to a level of 105.4. The dollar index is exhibiting a downward trend.

The euro continues to show buying interest amid a recent recovery trend, rising to as high as 1.0629 in the last hour. The Japanese yen has appreciated by approximately 0.35% against the dollar today, as the USD/JPY pair began to test the support level of 149.60 in recent days.

Gold is experiencing a slight increase of 0.1% today, moving to the level of $2,634. It appears that the employment data has had minimal impact on the gold market, with the precious metal continuing to trade within the narrow range of $2,630 to $2,650.

Futures indices are showing positive movement ahead of the U.S. market opening, particularly the Russell 2000 futures, which includes small businesses, being the highest rising index. Following the employment data, the expectations that the Fed may cut rates this month are also said to enhance risk appetite.

Domestically, the moderate rise of the dollar/TRY continues today. The exchange rate has dipped towards the level of 34.66 in recent hours, with buying at this point directing the pair towards 34.8. The euro/TRY is experiencing a slight positive sideways movement, finding buyers at 36.85 today.