4 min readThe latest Non-Farm Payrolls (NFP) report has been released, revealing actual job gains of 227,000 for the U.S., which is slightly higher compared to the forecast of 218,000 and last month’s actual figures of 12,000. It’s important to note that last month’s data reflected an expected shortfall due to the impact of hurricanes in Florida, so this month on month increase is in alignment with previous expectations.
The U.S. unemployment rate came in at 4.2%, slightly higher than the forecast and the previous rate of 4.1%. A conflicting data point, as there were more jobs added into the market this month. These figures will play a key role in the Federal Reserve’s considerations for their upcoming interest rate decision later this month, where the likelihood of a 0.25% rate cut remains strong.
DOLLAR INDEX (DXY):
Post the release of the NFP results, we have seen the Dollar Index drop 0.4%, which has correlated to a 0.47% increase on EURUSD.
EURO VS DOLLAR (EUR/USD):
If we take a closer look at the technicals, we can observe how price was trading just below 1.05900 before the news release, and post the release we have seen price action push higher into the 1.06200 region. Marking a significant break in structure to the upside.
S&P 500 (SDX):
The S&P 500 has also seen a direct impact from this NFP data result release, as we saw price trading at just over $6,000.00 before the announcement, and currently we are trading just below $6,100.00. Marking an increase of over 0.3% within the hour.
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