US Payrolls growth gives Wall Street a pre-holiday boost
|Fears of a downturn in US payroll growth were very much mistaken, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
US Payrolls growth provides a holiday surprise
Once again traders have been reminded to ignore the ADP report if they want any hope of guessing the NFP number correctly. Yesterday’s jobs shock proved to be a complete red herring, as the official figure smashed expectations. The US economy, by the looks of it, continues to chug along quite happily. Payroll growth moderated, allaying any inflation fears, and overall, the number has provided the positive tone for US markets as Americans prepare to head off for their long weekend.
Dollar rebound hits Gold hard
After the drubbing it has received in recent weeks and the overall bearish positioning on the dollar, it is no surprise to see the greenback mount a modest bounce following today’s figures. Gold has reversed course on the news as the uncertainty trade continues to unwind. Admittedly, the 9 July tariff deadline looms, but the administration’s appetite for further market turmoil seems much reduced, diminishing the chances of a revival of the rush to gold seen in April.
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