• Home
  • Contact
  • Privacy Policy
  • Store
my forex coaching
  • For Beginners
  • Strategies
  • Crypto
  • Technical Analysis
  • Stock Trading
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Crypto
  • Technical Analysis
  • Stock Trading
  • Product Reviews
  • News
  • Videos
No Result
View All Result
my forex coaching
No Result
View All Result
Home Forex News

US Economy Adds Strong 311,000 Jobs, Wages Grow Less Than Expected

Forex Tips by Forex Tips
March 10, 2023
in Forex News
0
US Economy Adds Strong 311,000 Jobs, Wages Grow Less Than Expected
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


US JOB REPORT KEY POINTS:

  • U.S. employers add 311,000 jobs in February, topping estimates calling for a gain of 205,000 payrolls. Meanwhile, the unemployment rate rises to 3.6%, two-tenths of a percent above forecasts
  • Average hourly earnings clock in at 0.2% month-over-month and 4.6% year-over-year, slightly below expectations
  • With the NFP data in the rearview mirror, attention will now turn to the U.S. February inflation report due for release next week

Recommended by Diego Colman

Get Your Free USD Forecast

Most Read: Gold Prices Soar as US Bank Sector Woes Sink Bond Yields

Updated at 9:15 am ET

MARKET REACTION

Immediately after the NFP report crossed the wires, the U.S. dollar, as measured by the DXY index, extended its decline, as Treasury yields deepened their session slump and expectations for the Fed’s terminal rate drifted lower. The reaction is a bit counterintuitive as employment growth remained extremely strong last month, but it is possible that the market took solace in the fact that wages did not rise as much as anticipated. In any case, average hourly earnings have been very volatile and subject to frequent revisions, so this move could fade as results are fully digested and interpreted. The situation with SVB Financial may also explain part of today’s reaction: traders are very apprehensive about the possibility of a banking crisis in response to the Fed’s extremely hawkish stance to the point that they will take any sliver of good news and run on it.

FED FUNDS FUTURES, TREASURY YIELDS AND US DOLLAR CHART

Source: TradingView

Original post at 9:45 am ET

U.S. employers continued to add to their ranks at a robust pace last month, but hiring momentum decelerated compared to the start of the year, a welcome development for Fed officials who have launched one of the most aggressive tightening campaigns in decades to slow the economy in their quest to return inflation to the 2% target.

According to the Bureau of Labor Statistics (BLS), payrolls rose by 311,000 in February, versus 205,000 expected, following a downwardly revised increase of 504,000 in January. Meanwhile, the unemployment rate climbed to 3.6%, two-tenths of a percent above consensus estimates, with the move likely driven by the increase in the labor force participation, which inched up to 62.5% from 62.4%.

US LABOR MARKET DATA CHARTS

image1.png

Source: U.S. Department of Labor

Elsewhere in the BLS’s survey, average hourly earnings, an important inflation indicator for the central bank, climbed 0.2% on a monthly basis, pushing the annual rate to 4.6% from 4.4% previously. The median forecast in a Reuters poll of economists called for earnings to rise 0.3% month-over-month and 4.7% year-on-year.

Recommended by Diego Colman

Get Your Free Equities Forecast

LABOR MARKET DATA AT A GLANCE

image2.png

Source: DailyFX Economic Calendar

While solid job growth can be concerning at a time of labor market tightness, the fact that employment costs are not rising as fast as feared can be seen as a positive signal for the Fed’s efforts to restore price stability. One month’s report is not enough to make broad conclusions, but it is encouraging nonetheless.

With the NFP data in the rearview mirror, attention will now turn to the U.S. February inflation report, which will be released next Tuesday. Headline CPI is seen cooling to 6.0% y-o-y from 6.4% in January, while the core gauge is forecast to clock in at 5.5% from 5.6% previously.

In terms of possible scenarios, hotter-than-anticipated data could revive expectations for faster tightening, putting back in play a half-a-point interest rate rise rather than a 25 basis point hike. On the flip side, softer-than-forecast results could help quiet the hawkish narrative, solidifying calls for less aggressive tightening over the forecast horizon.

Stay tuned for market reaction and analysis

Written by Diego Colman, Contributing Strategist for DailyFX





Source link

Share76Tweet47

Related Posts

USD/JPY Loses Altitude and Sinks to Support, AUD/USD Defies Ironclad Resistance

AUD/USD Charts Bullish Technical Setup as USD/JPY Defies Channel Resistance

by Forex Tips
September 21, 2023
0

Trade Smarter - Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team...

USD/JPY Breaks Major Trendline Resistance as USD/CAD Defies Key Moving Average

USD/JPY Treks Higher as AUD/USD Carves Out Double Bottom

by Forex Tips
September 20, 2023
0

USD/JPY TECHNICAL ANALYSISUSD/JPY took a quick plunge early last week, but found solid footing just above technical support at...

Wait-and-See in Lead-Up to Fed’s Decision, RBA Minutes in Focus

Wait-and-See in Lead-Up to Fed’s Decision, RBA Minutes in Focus

by Forex Tips
September 19, 2023
0

Market Recap Recommended by Jun Rong Yeap How to Trade FX with Your Stock Trading Strategy Market sentiments remained...

What is it and How Does it Work?

US Dollar, Fed, Sterling, BoE, Japanese Yen, BoJ and More

by Forex Tips
September 18, 2023
0

Recommended by Daniel Dubrovsky How to Trade EUR/USD The US Dollar mostly underperformed against its major counterparts this past...

Gold Prices Tepid Despite Lower Yields Post-CPI. Is the Bullish Case Over?

Gold Prices Bounce Off Fibonacci Support, Attacks Cluster Resistance. What Now?

by Forex Tips
September 17, 2023
0

GOLD PRICE FORECAST:Gold prices rebound heading into the weekend, challenging cluster resistance stretching from $1,920/$1,930Despite Friday’s recovery, the fundamental...

Load More

Recent Posts

  • 00 GMT when France 40 traded near 7,344.90.
  • Our data shows traders are now net-short EUR/GBP for the first time since May 04, 2023 when EUR/GBP traded near 0.88.
  • Japanese Yen Remains at Risk After the Fed, Retail Traders Unwind USD/JPY Bullish Bets
  • Australian regulator sues Kraken provider over margin trading product
  • XAU/USD, XAG/USD at Risk to Higher Treasury Yields
Forex Pulse Detector

Categories

  • Alerts
  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.