Data released on Friday showed the US economy added 372K non-farm payroll in June, surpassing expectations. According to analysts at Wells Fargo, the “robust gain in payrolls should squash discussions that the economy is already in a recession.” They believe the June jobs report bolsters the case for another 75 bps rate hike at the FOMC's July 27 meeting.
“If the economy is in a recession, employers have not seemed to notice. Despite clamors that the economy may already be in a recession due to the possibility of two consecutive negative quarters of GDP growth (a view we do not share), the labor market continues to plow forward, supporting aggregate income and limiting the havoc wrought on spending by high inflation.”
“Nonfarm payrolls put up another robust gain in June, increasing by 372K. Even accounting for a net downward revision of 74K over the past two months, that still puts the number of jobs in the economy ahead of where forecasters expected it to be heading into today's report. Payrolls are now 0.3% below their pre-COVID peak, with gains remarkably steady the past three months in the narrow range of 368-384K.”
“Inflation remains paramount for the Fed, but the jobs market is also an important piece of the puzzle to the path ahead for policy as growth concerns mount. Today's report indicates that the jobs market remains extraordinarily strong. While the size of the FOMC's next move hangs primarily on this upcoming Wednesday's June CPI report, the June jobs report bolsters the case for another 75 bps hike at the July 27 meeting.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD remains on the back foot below 1.0800
EUR/USD remains on the defensive below 1.0800, as it consolidates weekly gains heading into Friday’s European session. The pair takes cues from the market’s sluggish momentum amid a light calendar and repositioning ahead of next week’s top-tier EU/ US events.
GBP/USD keeps range around 1.2550 amid quiet markets
GBP/USD is keeping its range play intact at around 1.2550 in the European morning this Friday. The US Dollar is licking its wounds following the US jobs data-led steep sell-off. Markets stay cautious, anticipating the end-of-the-week flows and position adjustments.
Gold lacks firm intraday direction, flat-lines around $1.965 area
Gold price struggles to capitalize on the previous day's solid rebound from the 100-day Simple Moving Average (SMA) support near the $1,940-$1,939 area and oscillates in a narrow trading band on Friday.
Binance.US to suspend USD deposits, citing aggressive and intimidating tactics by the SEC
BinanceUS, the American arm of Binance.com, has indicated plans to suspend USD deposits, noting that its banking partners would do the same for withdrawal beginning June 13.
US jobless claims shake markets, ECB and Fed meetings await
US weekly jobless claims, of all things, was responsible for yesterday’s main market move. Applications rose from 233k to 261k, more than the 235k expected. It triggered a US bond rally which dragged European peers higher as well.