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US Employment Exceeds Expectations Boosting Chances of FED Rate Hike

The US employment figures exceeded expectation for the second month in a row registering 255,000 on the non-farm payrolls numbers. The figure overshadowing the anticipated 180,000. With general employment up across a multitude of different sectors.

The unemployment rate remained unchanged at 4.9 % slightly disappointing the expected 4.8%. However at least showing stability.

Further endorsing the strength of the US job market was the release of the average hourly Earnings figure which registered 0.3%. Translating to an eight cent increases in hourly wages. Averaged out earnings are up 2.6% year on year in the US.

Markets reacted accordingly and the dollar strengthened against the major currencies, Government bond yields rose and US Stocks hit monthly highs. All-time highs were enjoyed by the Nasdaq and S&P500 index.

Following the data, Michelle Mayer senior economist at Bank of America stated:

“The July jobs report was everything you could have asked for and more. Provided the strength in jobs is confirmed with other economic data, the FED will have sufficient reason to hike this year.”

Once again figures inspired confidence within the labour market and quickly tabled the conversation of US interest rate hikes. The markets now anticipate a 25pc hike before the end of the year.

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By | 2018-04-30T17:34:39+00:00 August 6th, 2016|Forex News|0 Comments

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