US non-farm payrolls will close out the week for macro news.
“The jobs report...will be critical in assessing whether we will indeed get a rate hike,” ING Economics said.
“Strong jobs numbers would undoubtedly fuel expectations of another rate hike,” ING added.
“However, signs of labour market softening and market angst over the lack of a resolution on the debt ceiling could quickly see those rate hike expectations evaporate,” ING added.
The health of the US jobs market will be in focus. JOLTS job vacancy data on Wednesday and ADP employment figures on Thursday were the appetisers before the main course on Friday.
The US economy unexpectedly added 253,000 jobs in April, beating forecasts of 180,000 and following a downwardly revised 165,000 in March.
So far the jobs market has proved resilient in the face of the rate hikes by the US Federal Reserve and May’s figures will be the latest test as to whether the monetary tightening is feeding through to the labour market.
ING Economics predicts non-farm payrolls will rise 195,000 in May with the Trading Economics compiled consensus forecasting an increase of 180,000.
The US unemployment rate is expected to edge up to 3.5% in May from 3.4% in April.