USD Gains Momentum
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!
Better Than Expected NFP, But Unemployment Ticked Higher
What happened?
The US Jobs Report came in with much better-than-expected data. The economy added over 850K new jobs in June compared to 583K in May, while it had been anticipated to add around 720K new jobs. This is the first time in over three months the new jobs data comes higher than expected.
In general, jobs creation is currently healthy. Private Payrolls added around 662K, while it had been anticipated to add around 615K. Yet, Manufacturing Payrolls added around 15K vs. 25K estimated.
Wage’s growth spiked up again. This will keep inflation fears alive. YoY Average Hourly Earnings advanced to 3.6% in June up from 1.9%, while MoM increased by 0.3% inline with the market estimates and slightly lower than the previous 0.5%.
However, the Unemployment Rate ticked higher again to 5.9% up from 5.8%, even though the estimates were to decline further to 5.6%. Such uptick comes on the back of higher labor force participation rate.
What does US data mean for traders?
The figures we got today represent a new positive factor for the US Dollar. It might act as the first reason for a possible upside retracement. Still, technical indicators are still suggesting that the Dollar needs to take a quick break before the upside trend resumes. As for the Fed, the numbers are highly welcome, despite the upside tick in Unemployment Rate, while Wages might be the main concerns for now. Yet, there is no reason to believe that the Fed will keep the current policy unchanged until the end of the year.
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