4 min readThe latest Non-Farm Payrolls (NFP) report has been released, revealing actual job gains of 147,000 for the U.S., which is higher than the 110k forecast. May’s headline job creation was revised higher to 144,000 from 139,000.
The U.S. unemployment rate fell to 4.1% from 4.2%, defying expectations of a rise to 4.3%. However, wage growth was weaker than expected at 0.2% MoM, below the fall to 0.3% expected.
The data points to surprising resilience in the labour market, calming worries over the health of the jobs market. The data supports the view that the Federal Reserve will remain on hold in the July meeting. Traders are pricing in below 50 bps of cuts this year, down from 65bps before the data release.
DOLLAR INDEX (DXY):
Following the release of the NFP results, the Dollar Index has extended its gains from earlier in the day. The USD traded +0.26% prior to the release and trades +0.66 at 97.00 following the data. The USD still trades at around 3.5 year lows.
DOLLAR VS YEN (USD/JPY):
If we take a closer look at the technicals, we can observe how USD/JPY was trading at 143.80 before the data release, and post the release we have seen price action push firmly higher towards the 145.00 region.The move has pushed the price above the 200 SMA on the 4-hour chart, testing 145 resistance.
S&P 500 (SDX):
The S&P 500 has risen after the NFP data result release, as we saw price trading at just below 6230 before the announcement, and currently we are trading just above 6240. The S&P 500 still trades around record highs.
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