“An early look at the state of the U.S. job market in June from payroll provider UKG suggests some strengthening, even as the Federal Reserve lifts interest rates sharply and economists raise alarms over the likelihood of a recession,” said Reuters late Wednesday.

Key quotes

Workforce activity increased slightly in the first two weeks of the month, according to the firm which tracks shift work in real-time. It mostly declined during the prior three months.

Particularly notable, the firm said, was an increase in demand for workers in retail, the first such increase since the start of the year.

Powell on Wednesday said he does not see current recession risks as being particularly elevated, though a downturn will be "challenging" to avoid, especially because so many of the factors putting upward pressure on prices are beyond the Fed's control, such as Russia's war and China's COVID-19 lockdowns.

But Powell also said he believes the labor market is "unsustainably hot," suggesting that he would welcome some cooling.

Market reaction

The news fails to gain any major reaction as most currency pair’s remained sidelined and the S&P 500 Futures print mild losses by the press time.

Also read: Forex Today: Recession and inflation, the perfect storm

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