Weak US Payrolls Strengthen Case for October Fed Pause
The US nonfarm payrolls rose by just 29,000 in September, significantly lower than the expected 90,000 new jobs. This weak jobs report has strengthened expectations that the Federal Reserve may hold interest rates steady at its October meeting.
The unemployment rate edged up to 4.2% from 4.1%. This comes as a surprise, given the forecasted numbers, and adds to speculation about the Fed's next move on interest rates.
Bond yields are an important factor for Bitcoin, and the recent increase in Treasury yields has been a major obstacle for BTC during its recovery. A sustained fall in yields following the employment report could remove some of that pressure, making it easier for Bitcoin to break through its current resistance area of $87,000 to $87,500.