For Traders

Analytical Reviews

10.07.202312:01 Forex Analysis & Reviews: Contrasting employment figures in the US

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Contrasting employment figures from ADP and the US Department of Labor created uncertainty in forecasts for dollar, as it is still unclear how the Federal Reserve will react to the situation.

The ADP said employment data for the private sector in June more than doubled the estimate, showing 497,000 instead of just 220,000. Meanwhile, the US Department of Labor said non-farm employment increased by 209,000, lower than the expected 240,000.

Nevertheless, this weaker employment data will not be enough to change the Fed's decision to proceed with the planned rate increase in July, as rapid wage growth increases inflationary pressure.

But dollar continues to be sensitive to Treasury yields, which declined amid Friday's news. Reportedly, the yield on 10-year bonds dropped to 3.707%, compared to the previous high of 4.017%.

The CME FedWatch tool said they could see a 91.8% probability that the Fed will raise rates by 0.25% in July.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.