Fed Has More Reasons To Be Hawkish As JOLTs Job Openings Rise Above 10 Million

Vladimir Zernov
Updated: May 31, 2023, 20:48 GMT+00:00

The probability of a 25 bps rate hike at the next Fed meeting increased from 54.8% to 69.9% after the release of the report.

JOLTs Job Openings

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Key Insights

  • JOLTs Job Openings rise to 10.1 million in April as the job market remains strong. 
  • There is a 69.9% probability of a 25 bps rate hike at the next Fed meeting. 
  • U.S. Dollar Index tests multi-week highs as traders prepare for a more hawkish Fed. 

On May 31, U.S. released JOLTs Job Openings report for April. The report indicated that the number of vacancies increased to 10.1 million. Analysts expected that JOLTs Job Openings would decline to 9.38 million, so the report exceeded analyst expectations.

The report showed that the job market remained strong despite rising interest rates. JOLTs Job Openings may have a significant impact on Fed’s policy as the job market is among the key catalysts watched by the central bank. The FedWatch Tool indicates that there is a 69.9% probability of a 25 bps rate hike at the upcoming Fed meeting in June.

Today, traders also took a look at the Chicago PMI report, which showed that Chicago PMI declined from 48.6 in April to 40.4 in May, compared to analyst consensus of 47.

U.S. Dollar Index rallied above the 104.50 level after the release of the job market data. Traders prepare for a more hawkish Fed as the job market stays strong.

SP500 tested session lows near the 4180 level as rising interest rates are bearish for stocks. Traders are also cautious ahead of the debt ceiling vote.

Gold pulled back towards the $1965 level as traders focused on the strong dollar and the rebound in Treasury yields.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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