USD Points Lower Following Jobs Report, Inflation to Follow on Thursday
<br>
1 Minute Market Rundown
- USD has volatile Friday as US Non-Farm Payroll figure suggested the economy only adding 187,000 jobs in July <br>
- Wage inflation rises, whilst unemployment drops to 3.5%e <br>
- Inflation figures releasing later in the Week could see further USD weakness <br>
USD-
The Non-Farm payroll release is always one of the most key events in a month, well, from a markets stand point at least! And this months figures giving insight into the condition of the US labour market n July did not disappoint. Overall, 187,000 new jobs were added, below trend but don't let that mislead you.
<br>
<br>
The overall figure was below that 200k key psychological level yes, but the US already had a very low 3.6% unemployment rate, that also fell to 3.5%. At a certain point an economy simply runs out of people to perform new jobs and that's likely to happen if unemployment is still at a 1969 low.
<br>
Wage growth remained stubborn, unchanged at 4.4% average hourly wage growth YoY, suggesting that the US jobs market remains to be a, if not the, most aggressive and unresolved aspect of US inflation.)
<br>
<br> <br>
In terms of its impact on the Fed, the release was to middling to change any minds, the jobs figure is down, but so is unemployment, to a multi-decade low. Wage growth is high and resilient, but officials will want to wait for the full inflation release on Thursday before committing to a position.
<br> <br>
Today's Economic Calendar
-12:00 No Major Releases
Markets This Morning
Rates correct as of 7:30am GMT
<br> <br>
<br>
What can we expect from financial and currency markets in 2023? Sign up for the latest information delivered to your inbox straight from Caxton Currency Analysts.
- The key themes to look out for in 2023
- How these may impact key currencies
- Wider economic considerations
- Key economic dates in 2023
- Currency forecasts for G10