The USD didn’t find any support in the employment market. Overview for 09.05.2017

The April report on the employment market in the USA didn’t support the USD, despite it was positive.

Recently, it seems that only the miracle can help the USD. Some standard positive factors, such as statistics or confirmations of the Fed’s strategic intentions, are taken for granted. But at the same time, the Euro is not very positive as well: nothing bad happened to the European currency, and the market is really happy about that.  

Several statistical reports published last Friday were pretty good. The labor market is still looking prospectively, the conditions are changed significantly on a regular basis, thus supporting the country’s economy. For instance, the Nonfarm Payrolls Private added 194K in April against the expected reading of 185K. The Unemployment Rate decreased from 4.6% to 4.4%, which is also rather good. The Participation Rate in April was estimated at 62.9%, another good number. The Average Weekly Hours remained at 34.4, the Average Hourly Earnings added 0.3% and matched expectations.

In the previous month, investors were upset by the fact that rate of growth of the average salaries fell short of expectations. This time, they can’t nag about it. But still, the USD didn’t find any support.

The current unemployment rate is very close to the lowest over the last 17 years. Considering that the population employment is increasing quite fast, the labor demand is growing, and companies are ready to pay, one can assume that the labor market in the USA is in better conditions than they thought earlier.

But even after such strong reports last Friday, the EUR/USD reached 1.10. It can be easily seen that right now there are more political factors than financial. The USD is fundamentally strong, but the Euro is winning so far.

RoboForex Analytical Department