Friday’s stronger-than-expected U.S. jobs report took everyone by surprise and the market’s reaction was swift as the dollar surged across the board. The headline figure came in at a good 209 thousand non-farm jobs added against prior expectations of around 180 thousand. What’s more, June’s number was revised up which brought up the averages during the past three months to a cool 195 thousand jobs per month.
The dollar bulls will certainly want to see a bigger-than-expected rise in the average hourly earnings index. But at 0.3% m/m, expectations are running high and as such the scope for disappointment is there. Meanwhile Canadian employment figures are expected to have risen last month at a slower pace of 13,000 compared to last month’s 45,300 figure.
It's become par for the course for analysts to declare every month's U.S. Non-Farm Payroll report as "THE most important jobs report ever!" but even those with a flair for hyperbole had trouble pumping up today's release. After all, the Fed is almost certainly on hold until at least its December meeting, which is four NFP releases from now (not to mention countless inflation reports, GDP readings, and ISM surveys).
Total nonfarm payroll employment increased by 209,000 in July, and the unemployment rate was little changed at 4.3%, the U.S. Bureau of Labor Statistics reported today. Employment increased in food services and drinking places, professional and business services, and health care. Household Survey Data Both the unemployment rate, at 4.3%, and the number of unemployed persons, at 7.0 million, changed little in July. After declining earlier in the year, the unemployment rate has shown little movement in recent months.
On the forex front, the euro/U.S. dollar (EUR/USD) currency pair was consolidating above the 1.17 key level, GBP/USD was holding its own above 1.31, while the USD/JPY was clinging onto key support at 110.35. Gold has started a touch weaker after closing up for the third straight week, while copper and crude oil were also in consolidation mode following their sharp recent gains.