Non-Farm Payrolls Employment
The U.S. labor market remains a pillar of the U.S. economy, with more jobs created last month than expected. Non-farm employment rose by 225k in January compared to expectations of growth of 160k. Although the projected figures are slightly lower than the previous ones, this is not significant at the moment.
In case this forecast comes true, Forex traders should expect the US dollar to grow against its main competitors.
The unemployment rate in the USA remains at a historically low level of 3.6%, although it is not the lowest. According to the FOMC statements, the virus epidemic does not threaten the U.S. economy, but the regulator cut interest rates in order to reinsure and support the economy.
In the last release of the data, the movement on the EUR/USD currency pair at the moment made 20 points.
But it also caused a general mid-term movement of 194 points.
The more interesting course of events took place on the asset, which closely correlates with the EUR/USD currency pair - gold. At the moment of publication, the asset prices rose by 122 points or $12 per ounce.
Last data: 273K
Consensus Forecast: -100K
The U.S. labor market remains a backbone of the U.S. economy, with more jobs created last month than expected. But the spread of the Coronavirus pandemic has forced the government to take decisive action that will limit the spread of the infection as much as possible. As a result, businesses are suspending their jobs and quarantining and dismissing employees. The U.S. as a whole is suffering huge losses because of this, no matter how much Fed tries to support the U.S. economy, forced measures in the fight against the pandemic cannot but affect the U.S. labor market.
U.S. Average Hourly Earnings YoY
Last data: 0.3%
Consensus forecast: 0.2%
This indicator shows the change in the average hourly wage level for major industries, except agriculture.
Unemployment Rate
Past data: 3.5%
Consensus forecast: 3.8%
The unemployment rate in the USA remains at a very low level of 3.5%. Even with tough countermeasures against the spread of coronavirus, mass quarantine, the U.S. has managed to keep the unemployment rate at a minimum. Although the data is expected to deteriorate, this is not a critical level of job losses and the U.S. government is trying to help U.S. companies to cope with the crisis in any way while keeping the jobs of their employees.
In the previous release of data, the movement on the EUR/USD currency pair at that moment made 32 points:
But also causing a total short-term movement of 191 points.
More interesting course of events took place on the asset, which closely correlates with the currency pair EUR/USD - gold, at the moment of publication gold prices fell by 425 points!
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