US Dollar Under Pressure Despite US Nonfarm Payrolls Rebound
Markets

US Dollar Under Pressure Despite US Nonfarm Payrolls Rebound

DailyFX.com -

Talking Points

- US nonfarm payrolls increased by +211K in April and the unemployment rate fell to 4.4%.

- But the internals of the report were weak, with wage growth slipping and the labor force participation rate falling.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar .

Would you like to know more about trading the financial markets? DailyFX's trading guide should be your first stop.

US nonfarm payrolls increased by 211,000 in April, considerably above the 190,000 forecast. But the uncharacteristically poor payrolls number last month when just 98,000 new jobs were created in March was revised down to 79,000. On-month average hourly earnings came in as expected growing 0.30% month-on-month, but March's rise of 0.20% was also revised down to 0.10%. On-year, average hourly earnings, meanwhile, missed estimates rising 2.50% year-on-year against expectations of 2.70%. Again, last month's 2.70% rise was revised down to 2.60%.

Another blot was the labor force participation rate falling to 62.9% from 63% in March, although the unemployment rate dropped to 4.4% in April from 4.6% in March.

So despite the strong headline figure, the details of April's US labor market data have disappointed. Ironically, this is the opposite of las month, when solid numbers under the hood of the report offset a poor headline number.

The Dollar has dipped versus the Euro in the immediate aftermath of the report, which fails to hammer home the certainty of a Fed rate hike in June. Since Wednesday's hawkish Fed update markets had increased their certainty of a June hike to 90%.

The Dollar had also been under pressure in the run up to today's figures on Euro strength in the run up to Sunday's French Presidential election.

Chart 1: EUR / USD 15-Minute Timeframe (Intraday May 5 , 2017 )

US Dollar Under Pressure Despite US Nonfarm Payrolls Rebound

Chart by IG

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@ig.com

Follow Oliver on Twitter @OPWMorrison

If you're looking for trading ideas, check out our Trading Guides ; they're free and updated for the second quarter of 2017

If you're looking for ideas more short-term in nature, please check out our IG Client Sentiment Data

Would you like to know more about financial market trading, or to get live coverage of major economic events? The DailyFX webinars are for you.

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Learn forex trading with a free practice account and trading charts from IG .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos