US jobs report mostly above expectations, helping dollar and stocks

Alexander Kuptsikevich FxPro

The number of new jobs in the United States increased by 1,763K after an increase of 4,791K a month earlier.

The fact came out slightly better than expected and reversed gloomy expectations of stalling labour market. At the same time, traders should not be confused by the relative dynamics: the number of jobs in the US now is 139.6 million, which is 12.9 million below the February level, before the hit of a pandemic.

Wages turned out to be much better than expected, where growth was 0.2% m/m and 4.8% y/y against -0.5% m/m expected and -1.3% m/m month earlier. At the same time, the index of aggregate wages is 6% lower than in February.

Probably, it is a moderately positive report for risk-appetite as for most indicators went above expectations. After some fluctuations, the US stock indices added cautiously, as did the dollar. The American currency enjoys demand from most of its competitors, as it removes the need for the Fed to prevent an economic downturn immediately.

Author

Alexander Kuptsikevich

FxPro

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

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