The ADP was (for once) right! The miss by a wide margin suggested the employment data would not be rosy and they got it right this time! This low number suggests that there’s going to be more stimulus from the Fed. The unemployment rate met the expectations (5.2% vs. 5.2% expected). The average hourly earnings saw a big jump higher (0.6% vs. 0.3% expected, 0.4% prior) and suggest that hiring recovered the most in higher-paying sectors of the jobs market. This also indicates that some of the lower-paying jobs have been lost. The participation rate stayed the same (61.7%). By reading further you agree with our disclaimer at the end of this report and acknowledge that we do not provide investment advice.

Now the question is whether the September taper announcement will be forgotten and that the Fed will continue supporting the economy. At the time of writing this, the initial reaction of the markets is to sell the USD (-0.17%), while the commodity currencies are being bid higher. The markets are (at the moment) betting that the Fed will have to keep the support on. It could well be that the Fed will postpone taper by one month to get more information on the economy and the labour market.

Trade Safe!

Janne Muta
Chief Market Analyst

DISCLAIMER TIOmarkets offers exclusively consultancy-free service. The views expressed in this blog are our opinions only and made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and its affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with any legal requirements for financial analyzes and must, therefore, be viewed by the reader as marketing information. TIOmarkets prohibits duplication or publication without explicit approval. FX and CFDs are leveraged products. They are not suitable for every investor, as they carry a high risk of losing your capital. Please ensure you fully understand the risks involved. All the prices in this report are CFD prices based on price charts provided by TIOmarkets unless otherwise stated. 


Write A Comment


Get our latest market analysis by email, daily

en_USEnglish (United States)