Breadth and severity of the virus resurgence suggests a larger labor market impact – Goldman Sachs

In its preview for November’s US employment report, up for publishing at 13:30 GMT on Friday, Goldman Sachs anticipates +450K for the headline Nonfarm Payrolls (NFP). The US bank also expects a 0.10% reduction in the Unemployment Rate from 6.9% to 6.8%.

While citing the reasons, their analysts mention that the breadth and severity of the virus resurgence suggests a larger labor market impact. Additional details from the report cited factors behind the easing Unemployment rate as reflecting an increase in household employment and a pause in the labor force participation rebound.

It should be noted that the US dollar index (DXY) is near the lowest since early 2018 and any more disappointment from the scheduled jobs report will exert additional downside pressure on the greenback.

Read: Nonfarm Payrolls Preview: Another dollar’s disappointment underway