Non-farm Payroll U.S. declines unless the expectations of economists, the unemployment rate rose to 9.6%

| Posted in | Posted on 5:02 PM

Forex news

Nonfarm payrolls in the world’s largest economy tumbled 54,000 in August after falling a revised 54,000 the previous month amid economists’ expectations of -105,000. At the same time, the unemployment rate rose to 9.6 percent from 9.5 percent in July. In turn, the Japanese yen, and the U.S. dollar lost ground against all major currencies as sentiment shifted gears. Meanwhile, U.S. futures pushed higher subsequent to the report, and indeed, risk appetite maybe the main theme going into the North American trade. Market participants should caution entering a trade today as many traders are offline going into the holiday weekend. 


 
Taking a look at the breakdown of the report, the private sector jumped 67,000, with most of the gains in education and healthcare. Also worth noting, the average hourly earnings rose 0.3 percent, which is up from 0.2 percent in July, while annualized earnings increased 1.7 percent. Some traders may overlook the report as much of the jobs that were created were part-time/temporary positions. There is not too much to be optimistic about as the labor market in the world’s largest economy is still depressed.
U.S._Unemployment_Rate_Rises_to_9.6_Percent_body_1.jpg, U.S. Nonfarm Payrolls Declines Less Than Economists Expectations, Unemployment Rate Rises to 9.6%
Prepared by Michael Wright
USD/JPY Intraday Chart
U.S._Unemployment_Rate_Rises_to_9.6_Percent_body_usdjpy.png, U.S. Nonfarm Payrolls Declines Less Than Economists Expectations, Unemployment Rate Rises to 9.6%
Source: Intellicharts – Prepared by Michael Wright
Following the “better” than expected report, the USDJPY pushed higher and now looks poised to maintain its northern journey going into the North American trade.
USDJPY Daily Chart
U.S._Unemployment_Rate_Rises_to_9.6_Percent_body_usdjpy2.png, U.S. Nonfarm Payrolls Declines Less Than Economists Expectations, Unemployment Rate Rises to 9.6%
Source: Intellicharts – Prepared by Michael Wright
Taking a look at the USDJPY daily chart, the pair has worked its way into a descending channel. As of late, the end of the trend may be on the horizon as the pair once again tests the upper bounds of the range. If we see a clear break and close above the 20-day moving average, this will validate a potential profitable long trade. At the same time, our speculative sentiment index is slowly scaling back from its extreme levels. A reversal will point to USDJPY gains.
Written by Michael Wright, Currency Analyst

Share

Comments (0)

Post a Comment

Subscribe to: Post Comments (Atom)