We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • The US Congressional Budget Office has updated its economic forecasts. Says it could take 10 years to recover from the Coronavirus impact, reducing real GDP by potentially 3% or $7.9tln through 2030
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.72% Germany 30: 0.63% FTSE 100: 0.43% US 500: -0.02% Wall Street: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TM0YYxRxZz
  • The $USDCAD's tumble today is the third largest since Dec 1, 2017. Not even a targeted trade war or extreme risk swing day https://t.co/oFBpMxmUDv
  • #Crypto update: $BTC +0.8% $BCH -0.7% $LTC +0.7% $XRP -1.6% $ETH +1%
  • #Nasdaq 100 may look to continue its upward trajectory. As the de facto leader of equity indices, the tech-heavy index has returned to within just 3% of its all-time high. Get your #Nasdaq market update from @PeterHanksFX here: https://t.co/mBSjd4bhBE https://t.co/5QUkJ8Z0mx
  • Speaking of the Dollar, here is the trade-weighted $DXY and an equally-weighted index of the Dollar majors I follow (in orange): https://t.co/SV35BRq5nF
  • $NZDUSD is pushing 11-week highs in today's anti-Dollar charge. Next level if a former support new resistance and 200-day moving average combo https://t.co/pJ5aOr8IDo
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 1.93% Gold: 0.49% Oil - US Crude: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Ih8apLmlOf
  • Canadian #Dollar Technical Outlook: #Loonie Rally Slams $USDCAD into Support - https://t.co/q4RhFRa8Hg https://t.co/epZdzpGUW8
  • The June #ECB meeting on Thursday is the most important central bank meeting of the week. Find out why, from @CVecchioFX here:https://t.co/GRJT0G6PEd https://t.co/soT0knfvod
USD Drops on Weak NFP Report, Fed Rate Cut Bets Rising

USD Drops on Weak NFP Report, Fed Rate Cut Bets Rising

2019-06-07 12:41:00
Justin McQueen, Analyst
Share:

NFP Analysis and Talking Points

  • US Nonfarm Payrolls rose by 75k in May, missing expectations of 185k expected; Prior month revised Lower
  • US Average Hourly Earnings falls short of consensus
  • Markets Raise Bets of Federal Reserve Rate Cut

See our latest Q4 FX forecast to learn what will drive the currency through the quarter.

DATA RECAP

US NFP 75k vs. Exp. 185k (Prev. 263k, Rev. 224)

Unemployment Rate 3.6% Exp. 3.6% (Prev. 3.6%)

Average Earnings M/M 0.2% Exp. 0.3% (Prev. 0.2%)

Average Earnings Y/Y 3.1% Exp. 3.2% (Prev. 3.2%)

NFP Report Review

US Bureau of Labor Statistics reported total nonfarm payroll (NFP) employment expanded by a 75k jobs in May, missing expectations of 185k. Alongside this, the headline figure for the prior month saw a downward revision to 224k from 263k, while the unemployment rate remained at the 3.6%.

Wage Growth Eases

The Fed focussed wage data missed analyst estimates with the monthly reading showing a 0.2% rise vs Exp. 0.3%, which took the yearly rate to 3.1%. Overall, the disappointing report will further fuel expectations that the Federal Reserve will be cutting interest rates in the near-term.

Market Response

The soft jobs reports saw a weaker US Dollar across the board, while US Treasury yields also edged lower. Consequently, gold prices have pushed higher with the precious metal hovering around 2019 highs as markets raise bets of a Fed rate cut.

USD Price Chart: 1-minute time frame (Intra-day)

USD Drops on Weak NFP Report, Fed Rate Cut Bets Rising

Chart by IG

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.