06.09.2019: US jobs data changes investor sentiment (USD, CAD)

06.09.2019: US jobs data changes investor sentiment (USD, CAD)


In early European deals the US dollar strengthened against safe-haven currencies but weakened against high-yield assets. The appetite for risk increased on the back of the news about resumption of the US-China trade negotiations in October. Though the ADP payrolls processor provided an upbeat report yesterday, the official data from the US Department of Labor indicated a slower growth in the employment rate. In August the American economy created 130 thousand jobs while an increase of 163 thousand was expected. However, the published statistics can hardly be considered as disappointing. A rise in the participation rate, the unchanged unemployment rate, and faster wages growth are quite encouraging signals. Reportedly, the US average wages increased by 0.4% in August on a monthly basis and by 3.3% in annual terms. These factor can push up the inflation rate. This data somewhat soothed the worries of market participants and boosted app etite for risk. As a result, the US dollar index returned to the level of 98.20. Besides, bears can gain control over the market again and push the American currency towards the short-term support at 97.96. A break of this level will lead to the 55-day moving average at 97.58. What is more, the US dollar plunged against the Canadian currency by almost 50 pips, breaking below the level of 1.3200 and heading towards the monthly lows. This way, the American currency reacted to the jobs data. By the way, Canada also provided the labor market statistics. Here, the wages growth rate slowed down while the employment rate increased more than expected. Another key event of this day is a speech of Fed Chair Jerome Powell. That is all for today. We wish you profitable deals! See you on our channel.

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