US: November jobs report did not do much to allay concerns - Wells Fargo

The US November jobs report showed that the economy created 155K new jobs, below the 195K of market consensus. Although softer than expected, analysts at Wells Fargo, still expect the Federal Reserve to raise rates in December as the labor market continues to tighten on trend. 

Key Quotes: 

“Average hourly earnings rose 0.2% compared to an expected rise of 0.3%, and October’s gain was revised down a tick. Nevertheless, wages are up 3.1% over the past year versus 2.5% this time a year ago. A dip in the workweek and a slower pace of hiring, however, point to a near-term weakening in income growth.”

“Today’s report points to some softening in the labor market, consistent with the uptick in jobless claims over the past month. While the rise in claims may partly be due to recent natural disasters and difficulty with seasonal adjustment around the early Thanksgiving, it may be an early signal that the benefits from fiscal stimulus earlier this year are starting to fade and the trade environment is beginning to weigh on growth.”

“The upward trend in wage growth is consistent with a labor market that continues to tighten. We still anticipate the FOMC will raise the fed funds rate at its upcoming meeting on December 19, but if the softening is the start of a slower trend, the Fed may dial back its path for the upcoming year.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: bears pressuring, 1.0980 critical support

Risk aversion took over the FX board on Friday, weighing on high-yielding assets. The EUR/USD pair, finished the week just a handful of pips above the 1.1000 figure amid mounting tensions between the US and China.


GBP/USD: at risk of losing more ground in the short-term

The GBP/USD pair advanced up to 1.2581, it highest in over two months, but was unable to sustain gains, ending the week around 1.2470. Cable could keep losing ground on a break below 1.2460, the immediate support.


USD/JPY: at a bring of breaking lower

Fresh risk-off flows resulted in the USD/JPY pair trimming weekly gains on Friday, ending the week at 107.55. The pair barely holding above a critical Fibonacci support at 107.45. Japan’s National inflation steady at lows in August.


Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more