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.
Unemployment in the USA dives below 4% for the first time since 2000
In April 2018 the overall number of jobs in the American economy tacked on by 164 thousand. That’s what the Ministry of Labor of the country informed.
The leap for the previous month was updated upwards from 103 thousand to about 135 thousand jobs.
At the same time, unemployment headed south below 4% for the first time since 2000. It accounted for 3.9%. Before this, it kept to 4.1% for up to six months.
Market experts on average had hoped for a leap in the number of jobs in April by approximately 193 thousand as well as a slump in unemployment to 4%.
Unemployment in the United Stated is already below the mark that the Federal Reserve considers to be a long-term norm. So, in the future we can expect upward pressure on wages as well as inflation in the United States.
In America, April’s average hourly wage inched up by 0.1% versus the previous month and also by 2.6% in annual terms - it appears to be less than many experts and investors hoped for.
The previous month the share of the population's participation in the labor force inched down to 62.8% versus 62.9% in March. Market experts had hoped for an ascend to 63%.
As for the average duration of the working week, it was still the same, accounting for 34.5 hours.
In the American manufacturing sector, in April the overall number of jobs increased by 24 thousand, which is better than anticipated. At the same time, retail enterprises ramped up the number of employees by just 2 thousand people, while the construction industry companies increased it by 17 thousand.
In the private sector of the United States the number of jobs headed north by about 168 thousand, while the service sector gained by 119 thousand.
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…