The most anticipated economic data last week was the U.S. Non-farm Payrolls (NFP) report. in March. Nearly a million jobs have been created, the highest number in 7 months. Economists expect the NFP to increase by just 647k but instead soar by 916k.
The unemployment rate fell 6%, as expected. The sharp rise in jobs should push the US dollar to strengthen further and although there was little reaction once the data was announced, the follow -up reaction was relatively modest.
This moderate reaction is largely due to the Easter holiday celebrated in western countries. The stock market closed, so not many investors responded to the report. Average hourly income growth is also declining, and this is a big surprise. Economists expect a modest increase of 0.1% but the actual report shows a decline of -0.1% and this is the first decline since June. In addition, the long -term unemployment percentage increased to 43.4% from 41.5% previously.
Despite some weakening data, the U.S. dollar. remains strong and stable as the job market recovers faster than most other countries. With more than 38% of adults having received at least one dose of the vaccine and more than 1 in 5 people having been fully vaccinated, the US dollar is seen to remain stable for the time being.
More job opportunities will be added in the coming months. According to the Centers for Disease Control (CDC), fully vaccinated people will be free to move and the risk to them is very low. This guarantee will help revive the tourism industry.
With many markets closed on the Easter Monday holiday, trading is sure to be sluggish earlier this week. This week some data in the US will be published such as non -manufacturing ISM data, factory orders and store inventory. The report is certainly strong given strong job growth and manufacturing activity.
We expect a slow movement in the Asian and European sessions today but there will likely be a sharp rise in the U.S. session.
