US Dollar in Focus Ahead of November Jobs Data, Bitcoin Steady

03 Dec 2021 · 3rd Party Analysis

US Dollar in Focus Ahead of November Jobs Data, Bitcoin Steady

WRITTEN BY ThorFX

In Summary:

  • Calm trading early Friday as investors anticipate jobs data from the US – NFPs arrive today
  • US dollar expected to see elevated volatility as markets digest the report; bitcoin steady

What’s Trading in the Markets?

The US dollar today is highly likely to see increased swings as investors and traders receive the latest jobs report. On that front, the non-farm payrolls, NFPs for short, arrive today. They will reveal how many new jobs were added by US employers for November. Expectations are set for over 580,000 new hires.

This, however, is only an estimation. The real number today will highlight if the US economy remains on an upward trajectory toward recovery. In more detail, fresh signs and developments point to mixed conclusions for the health of the world’s biggest economy.

The latest update, however, was strongly positive. In particular, the jobless claims continued on their downward path last week. This said filings for jobless benefits for the week ended Nov. 27 slipped to 222,000, lower than economists expected.

In that context, today’s jobs number will carry even more significance. It’s important to note that stocks and pairs could see elevated movements as investors shift their attention to the report. The US dollar, for example, could increase its volatility against the euro and other major currencies.

What’s the Outlook for Digital Assets?

The price of bitcoin early on Friday is moving sideways near $57,000. To this end, the original cryptocurrency has been lacking buying momentum over the week. In other words, the token has traded mostly near the flat line as crypto backers are waiting for fresh news.

With this in mind, digital asset traders anticipate another strong catalyst that could propel major cryptocurrencies to new heights.

Global Crypto Adoptions Continues to Grow

On that note, the global rate of crypto adoption continues to accelerate as the months’ progress. The latest good news arrived from Canada on Thursday. Investment management firm Fidelity Canada announced yesterday it has successfully launched two bitcoin ETFs.

The first one is a bitcoin exchange-traded fund, while the second one is a mutual fund focused on bitcoin. More specifically, these bitcoin funds are now listed on the Toronto Stock Exchange. They allow investors to purchase shares in the ETFs. In turn, these ETFs hold actual bitcoin.

Fidelity Canada is among the top investment firms in Canada. It manages over $160 billion in the Canadian market. This said the company’s exposure to bitcoin is seen as a big step toward broad crypto adoption.

“As bitcoin and digital currencies are gaining recognition among investors, we are pleased to offer a professionally managed bitcoin ETF and ETF Fund,” Fidelity said.

Economic News Today (EST time)

On Friday, the non-farm payrolls report arrives at 08:30 am. At the same time, the US releases its unemployment rate. Also, at 08:30 am, Canada will reveal its employment change for the month of November.

The news could present trading opportunities for market participants looking to take advantage of the elevated volatility.

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