It's not only central banks and bond yields in focus this week but US data is once again another key point of contention for markets. And even if inflation data has been the main draw in recent months, it would be careless to disregard the US labour market report at any point in time. And we'll have a couple of key releases in the run up to that on Friday, starting with the JOLTS data today.
This particular release may not be too impactful at times but in October, it certainly was as seen here. Now, we're in a rather sensitive period in markets - especially after the extremely aggressive amount of rate cuts priced in for next year. So, any data that challenges said narrative might go some ways in disrupting the balance of things. And even more so if it is backed up by less optimistic inflation developments.
We'll only get to the inflation stuff next week but for this week, the jobs data will have to do. The JOLTS data today will be the first touch point before we get to the ADP employment roulette change tomorrow and lastly, the non-farm payrolls on Friday. So, buckle up. It's going to be a bumpy few days potentially; not least as markets also have to consider key central bank decisions going into next week.
