In a highly anticipated unveiling, the U.S. Bureau of Labour Statistics reported a rise of 187 000 non-farm payrolls in July, slightly below the expected 200 000, continuing a captivating streak of economic revelations. The backdrop included a revised June increase of 185 000 jobs from an initially touted 209 000, underscoring the economy’s intricate fluctuations.
Amidst this economic theatre, the spotlight also highlighted a drop in the Unemployment Rate to 3.5% and steady annual wage inflation at 4.4%, surpassing predictions. As the U.S. Dollar felt the repercussions of this performance, former FED Governor Randall Kroszner’s insight added depth, emphasizing that the FED’s watchful gaze would centre on wage growth. This symphony of figures painted a picture of moderation, with July’s job gain signalling a recalibration from the vibrant pace of the previous year, while swap traders delicately adjusted expectations of FED rate hikes, implying a 44% chance of another rate hike, infusing the economic narrative with a sense of intrigue.
The labour participation rate held steadfast at 62.6%, stock futures stood unwavering against the twists and turns, while the yield curve subtly steeped in the minutes following the announcement.
Sources: Bloomberg, U.S. Bureau of Labour Statistics
Disclaimer: Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27231). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters that may include price, time, economic events, liquidity, risk, and macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change, which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein. Please consider the risks involved before you trade or invest.
