4 min readThe latest Non-Farm Payrolls (NFP) report has been released, revealing actual job gains of 139,000 for the U.S., which is slightly higher than the 130k forecast. However, there were significant downward revisions of 95,000 for the two precious months which more than cancels this out. These results suggest some weakness seeping into the labour market.
The U.S. unemployment rate came in at 4.2%, as expected and in line with the previous month. However, wage growth was stronger than expected at 0.4% MoM, ahead of the 0.2% expected, which could keep inflation sticky. These figures will play a key role in the Federal Reserve’s considerations for their upcoming interest rate decision later this month, where the likelihood of a pause on the current interest rate remains evident. The market’s expectations for rate cuts this year have fallen below 50 bps.
DOLLAR INDEX (DXY):
Post the release of the NFP results, we have seen the Dollar Index extend gains from earlier in the day. The USD traded +0.36% prior to the release and trades +0.50 at 98.75 following the data. The USD still trades down some 0.4% this week.
DOLLAR VS YEN (USD/JPY):
If we take a closer look at the technicals, we can observe how USD/JPY was trading at 144.25 before the data release, and post the release we have seen price action push modestly higher into the 144.55 region.The move has pushed the price above the 200 SMA on the 4-hour chart, creating a higher high.
S&P 500 (SDX):
The S&P 500 has risen after the NFP data result release, as we saw price trading at just below 5965 before the announcement, and currently we are trading just above 5985. The equates to a 0.4% rise post data as the price trades just below 6000, around a 3.5 month high.
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