The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
American job surge decelerates in February
In February, American job surged speeded down to a five-month minimum because the weather-related boost in the previous two months faded away, staff members became more scarce, while tighter financial conditions started putting pressure on the labor market.
The tempo of hiring was firm enough, pushing the unemployment rate back below 4%.
The US Labor Department's posted moderation in employment surge. The given outcome is in line with a decelerating economy that will mark ten years of expansion in July - the longest period on record. It will probably back the Fed’s cautious approach towards further interest rate hikes in 2019.
Nonfarm payrolls managed to head north by 180,000 jobs in February. By the way, it would be the smallest ascend since September. Eventually, in December and January, payrolls tacked on by 526,000 jobs because mild temperatures backed hiring at construction sites, and also in the leisure as well as hospitality industry.
In February, temperatures became chilly that market experts told could have reversed employment gains in a number of weather-sensitive industries. Market experts are assured that the effects of a stock market sell-off along with a leap in American Treasury gains last year restrained February hiring because household wealth dived by a record $3.8 trillion, while a lot of sources of capital for businesses froze up, as follows from Fed data.
Notwithstanding the fact the American economy surged by 2.9% last year, thus demonstrating the strongest outcome for three years, in general, it lost momentum as the year was over. Business spending, homebuilding, retail sales, and exports all headed south in December, setting the American economy on a slower surge path.
The previous year, labor costs added just 1.4%, which is the smallest leap since 2016, having soared by 2.2% in 2017.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…