It’s another strong U.S employment report
U.S unemployment rate fell to an 18-year low last month and U.S employers steadily added jobs.
Non-farm payrolls rose a seasonally adjusted +223k in May and the unemployment rate ticked down to +3.8%.
Wages in May improved modestly, growing +2.7% y/y. Revised figures show employers added +159k jobs in April and +155k in March, a net upward revision of +15k.
Digging deeper
Average hourly earnings for all private-sector workers increased +8c last month to $26.92. The +2.7% annual again is small compared to pre-recession readings.
Note: The last time unemployment was near current levels wages rose +4.3% from a year earlier.
Net result, the low unemployment rate and modest wage increases should keep Fed in line to hike rates at a meeting later this month. Consumer inflation has strengthened in recent months to reach the Fed’s +2% annual target.
The USD has extended its gains against some G7 currency pairs (€1.1670, C$1.2971, ¥109.60, £1.3317).
U.S 10-year yield trades up at 2.91%.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Dean Popplewell
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