April NFP Data Misses Forecasts by a Mile
(eToro Blog) It was reported earlier by the U.S. Department of Labor that April’s private sector or non-farms payroll data showed only 115,000 new jobs were created, well below analysts’ prediction of 170,000. March’s data was upwardly revised to 154,000 new jobs, however. Unexpectedly, the unemployment rate fell to 8.1% from 8.2%.
On Wednesday, ADP reported that only 119,000 new jobs were created in the private sector in April, falling far short of the forecast consensus of 175,000. And given the disastrous outcome of last month’s NFP, it’s possible that the estimates for April’s NFP had already been on the conservative side.
As expected, trading in the U.S. Dollar had already been somewhat subdued ahead of the announcement, and the EUR/USD pair was earlier trading lower at 1.3137 while OpenBook sentiment was bullish.
The Federal Reserve’s recent stance has been that the U.S. economy and labor sector are both showing signs of growth. This news, coupled with recent dismal data points and the worsening global outlook, could have the Fed members second guessing that stance and give rise to speculation that additional easing could be on the horizon.
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