Many friends don't understand why a non-agricultural data can cause a sharp drop in the circle❌
✅In fact, the video the night before mentioned that if the non-agricultural employment data is higher than expected, it will be a negative. Too high employment will delay the Fed's expectations for interest rate cuts, because non-agricultural employment and unemployment rate are one of the indicators that the Fed particularly likes to watch❗️It is the confidence of Powell and the Fed❗️
Too good employment data will reduce expectations for interest rate cuts
Because this will make the Fed believe that the US economy has not entered a recession and can achieve a soft landing, so it will continue to extend expectations for interest rate cuts
The unemployment rate is slightly higher than expected, and the market interpretation is not a big deal
In my opinion, the major negative is actually non-agricultural. If you want to cut interest rates early, the employment population must be lower than expected. Too low employment data will promote the Fed to cut interest rates.
