4 min readThe latest Non-Farm Payrolls (NFP) report has been released, revealing job gains of 22,000 for the U.S., well below the 75,000 forecast. July’s headline job creation was revised higher to 79,000 from 73,000. This was the fourth straight month that job crreation was below 100,000.
The U.S. unemployment rate rose to 4.3% from 4.2% in line with expectations and wage growth held steady at 0.3% MoM, inn line with forecasts.
The data, points to a sharp weakening in the labour market and cementing September rate cut expectations. The market is fully pricing in a 25 bps rate cut on September 17 with a 12% chance of a larger 50 bps cut. The market sees another two rate cuts before the end of the year.
DOLLAR INDEX (DXY):
Following the release of the NFP results, the Dollar Index has extended its losses from earlier in the day. The USD traded -0.35% prior to the release and trades -0.60 at 97.30 following the data. On the 4-hour chart the price has once again tested the lower bounds of the recent range.
EURO VS DOLLAR (EUR/USD):
If we take a closer look at the technicals, we can observe how EUR/USD was trading at 1.17 before the data release, and post the release we have seen price action push higher to the 1.1730 region.The move sees the price testing the horizontal and falling trendline resistance.
Trading involves risk.
S&P 500 (SDX):
The S&P 500 has risen after the NFP data result release, as we saw price trading at just above 6500 at a record high before the announcement, and currently we are trading just above 6523 a fresh record high with the tech sector leading the gains. 6550 could be the next logical target.
Trading involves risk.
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