Crypto Market Eyes US Job Data This Week
The crypto market is gearing up for a crucial week, with anticipation running high over the upcoming US Job data. The release of this data, especially in the aftermath of the softer US PCE inflation figures last week, is likely to provide crucial insights into the market trends for the fourth quarter. Traders will also be keeping a close eye on the Fed officials’ comments as they continue to build up expectations over a potential “Uptober” rally.
The Data in Focus
The Labor Department is set to release the US nonfarm payroll, unemployment rate, and hourly wages data for September on Friday, October 4. The nonfarm payroll data is expected to come in at 144,000, up from the prior month’s reading of 142,000, according to Wall Street estimates. Meanwhile, the unemployment rate is anticipated to remain unchanged at 4.2% for September.
Market Impact
The labor market data is a critical indicator for the Federal Reserve, which takes into account labor market trends while deciding its policy rates. The data will likely shape the market sentiment, especially with the Fed officials set to make their comments throughout the week.
Fed Officials’ Comments to Watch
A number of Fed officials are scheduled to speak this week, with remarks from Fed Governor Michelle Bowman and Fed Chair Jerome Powell set to kick off the week on Monday, September 30. The week will also feature remarks from Fed bank governor Lisa Cook and Minneapolis Fed President and Atlanta Fed President Raphael Bostic on Tuesday and Thursday, respectively.
Crypto Market Expectations
The softer US PCE inflation data has raised bets over a 50 bps rate cut again at the Fed’s November meeting, according to the CME FedWatch Tool. This has also sparked discussions about the crypto sector’s ability to maintain its “Uptober” momentum this year.
A Brief Look at History
Historically, October tends to be a positive month for Bitcoin and top altcoins. The market also tends to show a positive momentum in the final quarter of the year.
The Role of US Elections
This year, the upcoming US elections are also expected to bolster the market sentiment. Many market pundits are optimistic about a “Uptober” as well as a Q4 rally for the broader market in 2024.
Conclusion
The crypto market is set for a crucial week, with the upcoming US Job data and Fed officials’ comments likely to shape the market sentiment. With expectations building up for a potential “Uptober” rally, traders are keenly awaiting the data release on Friday.
FAQs
- What is the date of the US Job data release?
Friday, October 4
- What is the expected nonfarm payroll data?
144,000, up from the prior month’s reading of 142,000
- What is the expected unemployment rate?
4.2% for September, unchanged from the prior month
- Who are the Fed officials scheduled to speak this week?
Fed Governor Michelle Bowman, Fed Chair Jerome Powell, Fed bank governor Lisa Cook, Minneapolis Fed President, and Atlanta Fed President Raphael Bostic
- What is the significance of the labor market data for the Federal Reserve?
The labor market data is a critical indicator for the Federal Reserve, which takes into account labor market trends while deciding its policy rates
