Risk takers bet on ease on the Interest rates backed by NFP and in anticipation of weaker CPI data.

S&P 500 jumped higher on Friday by 1.36% on stronger than expected US Non-Farm Payrolls data that added 261K jobs in October 2022. On the news the US Dollar index dropped by 2% and Gold surged by 3% to its highest point since October. The US CPI data is due on Thursday this week and a weaker print in the inflation numbers would send investors scrambling to Buy on as it would prompt Fed to ease its further rate hikes.

US500 Daily Chart Directional bias - 1 Week 

Trade Insights – US500

The chart shows viable long positions above the pivot at 3748 with the target to test the key resistance Level at 3810 and then the test of the resistance zone between 3870 to 3910.

Alternatively, possible short positions below the pivot at 3748 heading towards the target of the key support level at 3710 and then the further test of the support zone between 3650 to 3620.

US Non-Farm Payrolls Data

The recent FOMC’s decision to raise the interest rate by 75 bps leading to 4.00% put selling pressures on indices. However, the October month, NFP data showed that the US economy added a stronger-than-expected 261K jobs in October, well above the market forecast of 200K jobs. Although it is the weakest reading since December 2020, the figures indicate a stronger albeit slowing labour market, as worker shortages persist.  On the other hand, the US Dollar DXY Index plummeted nearly by 2%.