US employment data supports the country’s economic recovery

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Posted on April 5, 2022 The notable news of the week in the United States is the current good behavior of the labor market, a fact that could pave the way for the FED to implement more aggressive policies and counteract the impact of inflation. The market is already discounting the probability of a rate hike by the Fed at 50 bps in May. On the other side of the Atlantic, the non-farm payroll data for the month of March was 431,000 new jobs created, slightly below market estimates (490,000), but being the eleventh consecutive month with a large expansion in the American labor market , which shows a good example of the positive trend of the American economy. In addition, the employment data for the month of February was revised upwards to 750,000. The unemployment rate in March fell to 3.6%, improving the figure compared to the previous month (3.8%) and very close to pre-pandemic levels, at a decade low. Little by little, the total pre-pandemic employment levels are being reached as the level of savings accumulated during the pandemic is reduced and a greater number of people are joining the labor market (there are still around 1.2 million jobs). On the other hand, the wage growth path is slowing down (5.6% annually), probably due to this greater number of people entering the labor market. In the foreign exchange market, during last Friday’s session the price of the EUR/USD pair moved in a range of 1.1028-1.1094, to end up closing the session in European time at levels of 1.1043. The euro appreciated against the Japanese yen to 135.30, while the community currency depreciated against the British pound to levels of 0.8420. The interest rate on the 10-year US bond recovered to 2.39% at the end of the week. INFORMATIONTitleUS employment data support the country’s economic recoveryDescriptionThe notable news of the week in the United States is the current good behavior of the labor market, a fact that could pave the way for the FED to implement more aggressive policies and counteract the impact of inflation. Author GLOBALCAJA

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