Are cracks appearing in the US labour market? NFP eyed for further evidence

We’re seeing cautious trading ahead of the jobs report, with jobless claims offering signs of cracks appearing in the labor market.

That primarily came from revisions to previous figures that show a clear trend higher in claims, a trend that is likely to worsen as mass layoff announcements find their way into the data.

The next few months are likely to paint a very different picture of the labor market in the US and that could even be exacerbated by recent turbulence in the banking system.

Soon enough, the Fed will likely have an abundance of evidence that rate hikes have taken the heat out of the economy, perhaps too well. At which point the rate cuts later in the year that has been priced into markets may look increasingly likely and necessary.

The bitcoin consolidation continues

Bitcoin has been consolidating for a few weeks now after surging amid the banking mini-crisis. That it’s managed to hold those gains for this long is encouraging, even if the trigger for the initial rally isn’t particularly clear and certain explanations hopeful to put it lightly.

BTCUSD Technical Chart

BTCUSD chart prepared using Trading View

Bitcoin continues to trade not far from $30,000 and a break above here could deliver a big psychological boost. If it does correct lower, support could appear around $25,200 where it repeatedly ran into resistance between August and March.

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