US JOLTS rises to 4.834 million – dollar unimpressed

Another positive jobs figure from the US: JOLTS job openings are at 4.834 million. This is marginally better than expected. September’s number was revised down to 4.685 million.  The number of quits stands at 2.72 million, little changed from the previous month. In other data,  IBD/TIPP Economic Optimism beat expectations with 48.4 points and wholesale inventories rose by 0.4%.

The dollar is unimpressed and resumes its slide, with EUR/USD breaking above 1.24 and USD/JPY getting closer to 119.

Here is a quote from the report:

The quits level (not seasonally adjusted) increased over the 12 months ending in October for total nonfarm, total private, and government. Over the year, the number of quits increased for many industries, including both retail trade and health care and social assistance. The number of quits also increased over the year in three out of the four regions: Northeast, South, and West. (See table 10.)

The US JOLTS  job openings report for October was expected to show an advance to 4.81 million from 4.74 million in September. Despite lagging the Non-Farm Payrolls report by  over a month, the Federal Reserve looks closely at it, making it important for markets.

The US dollar was on the back foot, extending its retracement: EUR/USD traded just under 1.24, USD/JPY fell all the way to 120 and also other currencies are off their lows.

Apart from the headlines figure, the number of quits is also important: when people leave their jobs they  express confidence and also  usually go for a higher paying job.

In addition, the US  IBD/TIPP Economic Optimism was predicted to rise from 46.4 to 47.2 points. Wholesale Inventories carried predictions for a rise of 0.1% after 0.3% beforehand.

Wages are a critical factor in the timing of the rate hike. The Fed is might  remove the “considerable time” phrase in its meeting next week.