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 hovers around 1.0700 ahead of German IFO survey
EUR/USD is consolidating recovery gains at around 1.0700 in the European morning on Wednesday. The pair stays afloat amid strong Eurozone business activity data against cooling US manufacturing and services sectors. Germany's IFO survey is next in focus.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold: Defending $2,318 support is critical for XAU/USD
Gold price is nursing losses while holding above $2,300 early Wednesday, stalling its two-day decline, as traders look forward to the mid-tier US economic data for fresh cues on the US Federal Reserve interest rates outlook.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin (WLD) price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.