The US jobs report and inflation numbers for July had the perfect balance of being good enough to support a strong economic recovery in the US, while lacking in the areas that the Fed is most concerned with right now, including wage growth. From a markets standpoint, we couldn’t ask for more. No one wants the economy to suffer in order for the stock markets to keep pushing higher but the Fed, in remaining extremely dovish regardless of the improvement being seen in many areas, has created a situation whereby the data can be great in most areas but we don’t have to worry about rate hikes, which means stocks can continue to push higher.
The numbers themselves were a little mixed but there were a lot of good points to the data that shouldn’t be overlooked. For example, the unemployment rate rose but so did the participation rate for the first time since March. While the rise was only marginal, it’s still potentially a sign that people are returning to the work force as they see the jobs market improving. In terms of job creation, only 209,000 jobs were created in July, which is lower than expected, but last month’s figure was revised up by 10,000 and this month’s was far from poor. It’s also the sixth consecutive month that more than 200,000 jobs have been created which is not something to be sniffed at.
The numbers themselves were a little mixed but there were a lot of good points to the data that shouldn’t be overlooked. For example, the unemployment rate rose but so did the participation rate for the first time since March. While the rise was only marginal, it’s still potentially a sign that people are returning to the work force as they see the jobs market improving. In terms of job creation, only 209,000 jobs were created in July, which is lower than expected, but last month’s figure was revised up by 10,000 and this month’s was far from poor. It’s also the sixth consecutive month that more than 200,000 jobs have been created which is not something to be sniffed at.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.