May’s NFP Data Dismal; U.S. Unemployment on the Rise
this post has been viewed 30 times
(eToro Blog) The U.S. Labor Department earlier reported that non-farms payroll saw only a marginal increase of 69,000 new jobs in May. That was well below the consensus of economists recently polled who had predicted the creation of 150,000 new positions, a number that was, in fact, downwardly revised after ADP’s private sector data fell short of expectations. It was also reported that April’s data was revised down to 77,000 jobs from 115,000, and the unemployment rate was rose to 8.2% against analysts’ expectations that the rate would be unchanged at 8.1%.
Earlier in the week, Lior Alkalay, eToro’s Senior Analyst, had predicted that only about 25,000 new jobs might have been created in May, given that there were other fundamentals at play, and today’s data, though somewhat higher, reaffirms that the U.S. job market cannot remain resilient to European woes.
Trading is generally subdued in EUR/USD trading ahead of a major announcement such as this, though events in the Eurozone have driven investors to the safety of the U.S. Dollar by the droves. The EUR/USD pair was recently trading down at 1.2323 and sentiment among OpenBook traders was bearish with three bears for every one bull.
The Federal Reserve has taken a wait and see approach before committing to further easing, though some analysts believe that they will move into a more accommodative bias as the U.S. presidential election nears in early November. With a worsening global outlook likely to jar the still tepid U.S. economy, this data could be enough to propel the FOMC’s fence sitters into the dove’s camp.
Copyright 2012 eToro Blog
this post has been viewed 30 times
[...] May's NFP Data Dismal; U.S. Unemployment on the Rise Go to this article [...]