Investors await May jobs data amid rising Fed rate hike expectations, with wage growth and unemployment key to policy outlook.
The US Labor Department will release May Nonfarm Payrolls data, with economists forecasting an 85K increase after gains of 185K in March and 115K in April. The report comes as Federal Reserve policymakers adopt a more hawkish stance under new leadership, heightening scrutiny of labor market trends.
The unemployment rate is expected to hold at 4.3%, while annual wage inflation is projected to ease to 3.4% from 3.6% in April. Analysts at TD Securities anticipate a weaker print of 60K, with unemployment rising to 4.4% if labor force participation remains stable.
Markets remain focused on inflation signals, with only a significantly weak jobs report likely to dent the US Dollar’s recent strength.