US dollar index is at a four-month maximum after data on US employment

US dollar index is at a four-month maximum after data on US employment

On Monday, the evergreen buck was seen near the maximum of 2018 after data on jobs turned to be weaker than anticipated, although it was still firm enough to back the arguments in favor of further increase in interest rates of the Federal Reserve.

A renewed concern about trade clashes can potentially cloud the further prospects for the surge of the American currency.

On Friday, the US Labor Department informed that employers managed to add 164,000 jobs in April, which is more than in March, and also more than enough to keep pace with population surge. As a matter of fact the unemployment rate headed south to 3.9% from 4.1% a month earlier, hitting its lowest value since December 2000.

Market experts had expected 192,000 new jobs in April. The unemployment rate dived to 4%. However, remaining a constant mystery, the wages of employees keep soaring in rather a sluggish way, notwithstanding the historically low level of unemployment.

In April, the hourly wage of private sector employees rallied by an average of 0.15% versus the previous month, hitting $26.84. Apparently, this figure turned to be 2.6% higher than the level of 2017, and a 12-month soar actually corresponds to the trend of recent years. The share of participation (or in other words the share of the population in the labor force) headed south by 0.1%, getting to 62.8%.

In addition to this, a separate measure of unemployment demonstrates that the labor market might not be as firm as the basic level of unemployment states. The given measure, which takes into account part-time employees who would prefer full-time employment, and also staff members who also didn’t want to seek work, inched down to 7.8% in April versus 8% in March.

The Australian dollar slumped from the start of the trading session, but soon it managed to regain lost ground due to the National Bank of Australia's report on business confidence

 

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