US NFP beats forecasts, dollar rises

  • by Ahmed Mamdouh
  • September 7, 2018, 5:40 AM
  • 205 Views
 24       11      

The U.S. dollar soared against major currencies on Friday after the U.S. jobs report showed a more than forecast job creation pace in August.  

The non-farm figures signaled a more than forecast job creation pace in August, acceleration in wage growth and stabilization in the unemployment rate. 

Analysts predicted a job creation of 191,000 jobs, but the reading showed 201,000 jobs added, from a downwardly revised of 147,000 job-gain in July, which was 157,000 before revision.

Unemployment rate steadied at its record low of 3.9 percent, missing forecasts of a decline to 3.8 percent.

The average hourly earnings gained 0.4 percent last month, above forecasts of 0.2 percent surge, after a 0.3 increase in July. That pushed the annual earnings growth to 2.9 percent from a previous of 2.7 percent.

This report should pave the way for policymakers to raise interest rates by another 25 basis points at the end of this moth.

The dollar index set a new session peak at 95.18, yet investors will have to wait until the end of Friday’s session to see whether the dollar would lock a weekly gain or loss.

However, the gains in the dollar after the report were limited amid investors’ focus on the trading tensions between the U.S. and China.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at Ofeed.com, with 11 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from the American University in Cairo and a Bachelor Degree in Economics from the Faculty of Economics and Political Science, Cairo University.

Related Articles