{"id":35764,"date":"2022-08-08T09:36:28","date_gmt":"2022-08-08T06:36:28","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=35764"},"modified":"2025-12-11T14:25:36","modified_gmt":"2025-12-11T12:25:36","slug":"strong-employment-data-keeps-pressure-on-fed-to-raise-rates","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/ph\/strong-employment-data-keeps-pressure-on-fed-to-raise-rates\/","title":{"rendered":"Strong employment data keeps pressure on Fed to raise rates"},"content":{"rendered":"

The greenback jumped on Friday, outperforming against its major counterparts after an extraordinary employment data report, showcasing the tightness of US labour market. More specifically, the US economy added 528k new jobs in July, an amount twice as large as expected by the forecasts, and the total non-farm payrolls figure returned to pre pandemic levels. The unemployment rate, dropped slightly from the 3.6% rate, held steady for months now, to the 3.5% in July and the average hourly earnings also rose to 0.5% mom beating estimates. As a consequence, the stronger than expected jobs reports boosted the dollar and strengthened the market expectations that the Fed will remain hawkish in its plans towards taming inflation. Hence these reports act as conviction in the Fed\u2019s eyes that the US labour force is tight and \u201callows\u201d them to continue with aggressive rate hikes. Data from the FFF indicates that the market already started appraising the 75-basis point rate hike possibility for the September meeting. Also noteworthy, was Fed Governor Bowman\u2019s comments indicating that she still retains an open mind on the magnitude of hikes depending on how the economy evolves and the importance of allowing information to guide her judgment on how big the increases will be. This follows closely the narrative adopted by numerous Fed speakers during last week showing some sort of consensual agreement towards their future plans. WTI\u2019s slacking performance and the commodities price during today\u2019s Asian\u2019s session seems to be stuck below $90 per barrel after a wide drop last week given than US oil inventories seem to be on the rise. Gold retracted on Friday mirroring the dollar\u2019s strength after the strong employment data for July which raised questions as to whether the safe haven could continue to attract inflows. We expect the negative correlation of the instruments to continue. US stock markets ended mixed on Friday, as the markets tried to digest July\u2019s US employment data while earnings releases are still expected.<\/p>\n\n\n\n

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