The United States reported 201K new jobs created in August, 10K more jobs than the 191K expected by market. However, July data was revised 10K jobs down to 147. Dollar and stocks rally on wages growth.
The US Department of Labor announced that the US economy created 201K new jobs in August, according to its latest nonfarm payrolls inform. The unemployment rate was unchanged at 3.9% in August from July, its generational low, while experts waited for a decline to 3.8%.
«Over the month, employment increased in professional and business services, health care, wholesale trade, transportation and warehousing, and mining,» said the official report.
Labor force participation rate declined to 62.7% in August from 62.9% in July. Against expectations for a rise to 63.0%.
However, the highlight of the employment report came from wages. Average hourly earnings grew 2.9% in August, its highs rate since April 2009. «In August, average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents to $27.16. Over the year, average hourly earnings have increased by 77 cents, or 2.9 percent. Average hourly earnings of private-sector production and nonsupervisory employees increased by 7 cents to $22.73 in August.»
Investors have taken that as a fundamental case for a fourth rate hike by the Federal Reserve. Making the dollar jumps.
Dollar rallies on NFP; EUR/USD down
EURUSD daily chart Sept 7
The Dollar index is trading 0.25% up on the day at 95.30, following an upbeat nonfarm payrolls report and a higher than anticipated wages growth. DXY is trading positive for the first time in three days.
On this framework, EUR/USD is falling 0.45% amid dollar strength on speculations for more rate hikes by the FOMC. The pair is currently trading at 1.1570, and it is now testing the 20-day moving average at 1.1555. Watch out for 1.1530 as the next support.
