Wall Street Estimates On US Jobs Data, Crypto Market To Crash?

The U.S. Bureau of Labor Statistics will release the crucial nonfarm payrolls and unemployment rate data for the month of February today. According to market consensus, nonfarm payrolls likely increased by 205K jobs and the unemployment rate fell to 3.4% in February.

Traders are closely watching the U.S. jobs data as strong growth of 517K in January and low unemployment rate will make the U.S. Federal Reserve continue rate hikes for longer and announce a 50 bps rate hike this month. However, the U.S. CPI inflation data on March 14 will ultimately clear doubts over Fed monetary policy in the coming months.

Stock futures tied to Dow Jones fell 0.33% and S&P 500 slipped 0.20 on Friday, while the Nasdaq 100 is in green as investors remain cautious ahead of the crucial data. Fed Chair Jerome Powell earlier claimed a possibility of sharper interest rate hikes as inflation continues to rise, but recession risk is also considered.

The CME FedWatch Tool clearly indicates a 54.3% probability of a 50 bps rate hike in March. It dropped from 68.3% a day earlier. Also, the US dollar index (DXY) has jumped over 105 amid uncertainty, putting more pressure on the crypto market.

Also Read: Can Bitcoin Price Crash To Sub-$15K And Ethereum $1K?

Wall Street Estimates On U.S. Jobs Data

Wall Street expects slower but strong jobs growth in February, despite U.S. jobless claims rising to 211K in February. The unemployment rate will fall to 3.4%, against 3.5% in January.

Most Wall Street firms including JPMorgan, Lloyds, Credit Suisse, ING, BMO, Barclays see nonfarm payrolls at 200K, while Goldman Sachs, Nomura, Wells Fargo, BNP Paribas, and UBS estimate over 250K jobs in February.

“January payrolls benefited from an extremely low seasonal hurdle, minus 3 million jobs, while February requires the addition of at least 770,000 jobs in order to record a positive payroll number,” said Ellen Zentner, chief U.S. economist at Morgan Stanley.

Meanwhile, almost all banks expect the unemployment rate to come in at 3.4% and wages to rise 0.3%, the same as that in January. However, the annual pay growth rate likely accelerated to 4.7% from 4.4%.

The crypto market will continue falling if data comes in as expected, but an unemployment rate above 3.4% will move the market upward.

Also Read: Biggest Crisis Ever For Crypto Market? Crash To Continue?

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.