The US economy has gained 128,000 jobs in October, substantially better than expected. Moreover, it comes on top of an upward revision to September's figures – 180,000 against 136,000 reported initially. August was also revised, by 51,000. Combined, they total a whopping 95,000 jobs.
The jobless rise is up to 3.6% as expected and it is accompanied by a participation rate of 3.3%. Gains in food and services pushed employment higher. A substantial fall in manufacturing jobs is the result of the strike in General Motors – fully priced in by investors.
Wages are up 0.2% monthly and 3% yearly, within expectations.
The US Dollar is on the rise. EUR/USD is falling from around 1.1150 to 1.1130. GBP/USD is down to below 1.2950, and USD/JPY is up to 108.20.
October's Non-Farm Payrolls report was expected to show an increase of only 89,000 jobs after 136,000 in September. The main reason for the downward drag stems from the long strike at General Motors. Nevertheless, the broader picture is of a gradual slowdown in net increases.
Wage growth was forecast to rise by 0.3% monthly and 3% yearly, better than the disappointing figures in September. The Unemployment Rate carried expectations for a minor rise from the 50-year low of 3.5% last time to 3.6% now.
Source : FXstreet