Nonfarm Payrolls (NFP) in the US rose by 916,000 in March, the data published by the US Bureau of Labor Statistics showed on Friday. This reading followed February's increase of 468,000 (revised from 379,000) and came in much better than the market expectation of 647,000.
Further details of the publication revealed that the Labor Force Participation Rate edged higher to 61.5% and the Unemployment Rate fell to 6% from 6.2%, matching analysts' estimates. Finally, wage inflation, as measured by the Average Hourly Earnings, fell to 4.2% on a yearly basis from 5.2% and missed the market consensus of 4.5%
With the initial market reaction, the greenback gathered some strength against its major rivals and the US Dollar ındex was last seen posting small daily gains at 92.97.
NFP Quick Analysis: Dollar buy opportunity? Tepid dollar reaction to sub-million job gain seems wrong.
"It is all about expectations – with headlines such as "the highest since 1983" shaping estimates and the market reaction," said FXStreet analyst Yohay Elam. "The US economy gained no fewer than 916,000 jobs in March, the highest since October. The Unemployment Rate dropped to 6% amid a participation rate of 61.5%."
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