US employment data for July (NFP)
- Average hourly earnings in the USA (m / m), fact 0.3%, forecast 0.3%.
- Nonfarm payrolls in the United States, fact 157K, forecast 193K.
- US trade balance, fact -46.30V, forecast -46.50V.
- The unemployment rate in the US, fact 3.9%, forecast 3.9%.
The report on employment in the US was largely negative because of the low number of people employed in the non-agricultural sector. On the other hand, a decrease in the unemployment rate and a reduction in the US trade balance can limit the decline in the US dollar. At a time when the overall unemployment rate remains near the multi-year lows.
Fig. 1. US unemployment chart
At the same time, the growth in the number of people employed in the non-agricultural sector of the US significantly decreased in the last month, which is certainly a bearish signal for the US currency. But it is also worth noting that a significant decrease in the US currency will be limited by positive signals from the Fed.
The US dollar index is limited to psychology 95.00. Pressure on the dollar is also on the part of correction after growth, but will be limited to more significant support 94.80.
Fig. 2.The US dollar index chart. The current price is 95.00 (10-year government bonds yield is a blue line)
Read also: “China is the main locomotive of the world economy”
Hanzenko Anton
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog: