The upcoming week in focus: critical labor market data and Fed speeches are released in the USA

The next seven days will bring several important macroeconomic events that will have a direct impact on monetary policy and market movements. The most anticipated will be the unemployment data and new job figures in America, which will be released on Friday and could significantly influence the trajectory of asset development.

Focus on the labor market: what figures to expect

Friday will be a decisive day for investors. It is when the US Bureau of Labor Statistics will publish the December unemployment rate — analysts expect a decrease from 4.60% to 4.50%. At the same time, the report will include the net number of jobs created outside the agricultural sector: the previous result was minus 10.5 thousand positions, and the forecast predicts a recovery to plus 5.5 thousand.

This contrast between the previous decline and the expected growth will be a key signal about the health of the American economy. Labor market indicators are traditionally one of the main benchmarks for the Federal Reserve when making decisions on interest rates.

Additional indicators for the week

Before the main unemployment data, other important figures will also be published. On Wednesday, the ADP report on employment in the US private sector for December will be released — the previous result was negative (minus 3.2 thousand), and consensus expects a recovery to 4.5 thousand new jobs.

On Thursday, the number of initial unemployment benefit claims for the week ending January 3 will be announced. The previous figure was 19.9 thousand claims, while the forecast predicts an increase to 21.6 thousand.

Fed officials’ speeches

Alongside the publication of data, several speeches by Federal Open Market Committee members are scheduled. Minneapolis Federal Reserve President Neel Kashkari will speak on Monday at the American Economic Association and will appear again on Friday to participate in a panel discussion. Richmond Federal Reserve President Thomas Barkin will deliver speeches on Tuesday and Saturday, focusing on economic prospects.

These speeches will give investors the opportunity to receive new signals regarding the Fed leadership’s stance on monetary policy ahead of key macro data.