United States unemployment rate falls to 5.0% in October

U.S. monetary policy is expected to normalise after seven years of near-zero interest rates, with almost three quarters of investors determining a hike is impending, according to the CME Group FedWatch. Bullard said. “That is going to be a hot debate and we won’t really have credibility as a committee for the notion of gradualness until we make that second move”.

Solid payrolls data later in the session could seal the case for a December rate hike.

“A lot more economic data is slated to be released between now and the Fed’s December meeting, but this is a positive step toward liftoff this year and should keep a December rate increase on the table as a live possibility”, said Tony Bedikian, Managing Director of Global Markets at Citizens Bank, predicting an increase. In addition to this increase, revised job report numbers for the two previous months show 12,000 more jobs were created. Futures were implying a 72 percent chance of a Fed rate hike next month, up from 58 percent before the jobs report. The euro fell to $1.708 its lowest since April, and last traded down 1.31 percent at $1.0738. To the upside, immediate resistance can be seen at 1.0753. The yield reached the highest since July. The dollar, meanwhile, has priced in several major events like quantitative easing in Europe that had forced it higher, also holding down USA prices.

“The U.S. economy has just turned off gravity for the Dollar”. To the downside, immediate support level is located at 123.16 levels.

The ICE U.S. Dollar Index DXY, +1.24% rallied after the report, putting pressure on gold prices. The jobless rate peaked at 10 percent in 2009 and is now closing in on what many economists believe is its lowest sustainable level. Economists were looking for 180,000 jobs.

At the last meeting, ECB President Mario Draghi made it clear the central bank was seriously considering not only an expansion of its bond purchase programme but possibly another cut to an already-negative deposit rate. To the upside, immediate resistance can be seen at 1.3315.

A few economists suggested that the explosiveness of October’s job growth might have been due in part to a bounce back from the tepid gains in August and September, when concerns about the global economy led a few employers to hold back.

US stocks ended little changed on Friday, with a rise in financials countered by a slide in utilities and other sectors, as Wall Street took the strong U.S.jobs report as evidence the Federal Reserve will soon raise interest rates.

The Dow Jones industrial average rose 46.90 points, or 0.3 percent, to close at 17,910.33. The two-year note jumped to a yield of 0.89 percent, a five-year high for that note, from 0.83 percent the day before. That was the largest rise since December 2014, with wages also increasing at a robust clip. It fell 4.2 percent on the week.

ENERGY: In energy markets, USA crude oil fell 78 cents to $44.41 a barrel in electronic trading in New York. It tumbled 5 percent on the week.

As for other precious metals, Comex silver for December settlement declined 28.8 cents or 1.9 percent to $14.695 per ounce.