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05 Aug 2022

Market Wire: US Job Growth Smashes Expectations, Dollar Rises

528,000 jobs were created in the United States last month – far above expectations, and sufficient to compel a larger rate increase at the next Federal Reserve meeting. According to data released by the Bureau of Labor Statistics this morning, the unemployment rate fell to 3.5 percent in July, and the participation rate moved down to 62.1 percent. Overall payroll employment has now exceeded pre-pandemic levels – hardly indicative of an economy toppling into recession. Average hourly earnings rose 0.5 percent month-over-month, accelerating from 0.3 percent in June. Ahead of the release, investors were positioned for a 250,000-job gain, with...

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Market Briefing: Markets Hit Snooze Ahead of Non-Farm Payrolls

Traders have set their alarm clocks a little later this morning, with most asset classes set to snore loudly until 8:30 am when the July non-farm payrolls report is released. Equity indices are flat on their backs, the commodities complex is sleeping in the fetal position, Treasury yields and the dollar are nestled under the covers, and most major currency pairs are spooning comfortably. This morning’s jobs number could be vital in setting near-term market direction. Investors expect the July non-farm payrolls report to function a little like Goldilocks’ porridge: If it is too hot, with more than 300,000 jobs...

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