• US Nonfarm Payrolls are set to rise by 170K in September, down from the 187K reported in July.
• US Dollar braces for a volatility spike on headline NFP and Average Hourly Earnings data.
• The Unemployment Rate in the United States is seen modestly lower at 3.7% in September.

Expectations of a final interest-rate hike by the US Federal Reserve (Fed) this quarter were reinforced after US job openings unexpectedly rose by the most in over two years to 9.610 million in August. The JOLTS Job Openings data pointed to a persistently tight labor market in the United States that could provide the Fed some leeway for more tightening.

Following the September policy meeting, several Fed policymakers have supported the narrative of the ‘higher rates for longer’, as the US economy showed encouraging signs of resilience. 

The US Dollar Index capitalized on the hawkish Fed rhetoric and hit an 11-month peak above 107.00 while the US Treasury bond yields challenged 16-year highs. 

However, odds of a Fed rate hike in November dropped to 23% from about 31%, after downbeat US labor market data released on Wednesday, triggering a long-due correction in the US Dollar and the US Treasury bond yields. 

The latest Automatic Data Processing (ADP) report showed that the US private sector added just 89,000 in September, down from an upwardly revised 180,000 in August and far below the 153,000 estimate. US Institute for Supply Management (ISM) Services PMI fell from 54.5 to 53.6 in September, although it matched expectations