Non-farm payrolls sharply missed estimates

By: Miguel A. Rodriguez

16:36, 07 May 2021

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The Bureau of Labor Statistics revealed the number of people employed in the past month

According to the latest NFP report, the figures came in significantly lower than the 990K expected, at 266K. At the same time, the unemployment rate reached 6.1%, also higher than the 5.8% touted.

Today and yesterday’s unemployment claims report carries significant importance as the Fed decided to maintain its zero-rate policy and other easing measures to cope with the economic recovery. From analysts’ point of view, a strong NFP report would have shown that Fed’s approach is working, and the economy is going back to healthy levels. Overall, the US labor market is still 8.2 million payrolls short of pre-pandemic levels from February 2020.

Following the news, USA30 is trading 0.03% lower, while USA500 is up 0.37%. The Dollar Index is trading at the moment of writing at 90.433 after plunging more than 0.50%.

Sources: cnbc.com, forexfactory.com

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