The dollar remained at a 7-month high on Monday after Friday's non-farm payroll report showed the creation of 271,000 jobs in October, the largest gain since December 2014. The United States unemployment has now settled at 5 percent, the lowest rate since April 2008. The NFP report that beat expectations has gotten analysts and traders alike prepared for the rate hike that the Federal Reserve has been talking about for months now, and is now looking increasingly likely for December.
What's Happening in Europe?
Positive data out of the United States, however, is not likely to be mirrored by European reports which are due out this coming Friday. As ECB officials await the euro-zone growth data later this week, analysts are expecting to see a 0.4 percent growth in the third quarter of 2015, matching growth of previous quarters but failing to rise above in a way that would signal a necessary upswing in the region and leaving European Central Bank President Mario Draghi with the difficult decision as to whether to implement monetary easing in the region. A lack of inflation coupled and a slowdown in emerging market economies worldwide has done nothing to help Europe's plight. European inflation remains near 1 percent, whereas the ECB strives to keep it just under 2 percent.
Chinese Data Disappoints
During Monday's Asian trading session traders started by digesting the weekend's reports out of Asia which were largely disappointing, though hardly unexpected. In China, Otober exports fell 6.9 percent from a year ago, falling broadly for the fourth consecutive month, while imports declined 18.8 percent. The result is a staggering $61.64 billion trade surplus. The country has already cut interest rates multiple times and has softened the exchange rate in an unsuccessful attempt to bolster the economy. Despite these efforts, the Chinese economic slowdown seems to be continuing. Later this week traders will hear the consumer and producer price report (out Tuesday) and the industrial production report (due Wednesday). Other monthly indicators are also due out in China on Wednesday, and these reports will likely call into question whether China will reach its yearly growth target of 7 percent.