Expectation-busting US data has hammered the pound, as it fell below the psychologically significant $1.60 level for the first time since November.
The US Department of Labor said that total nonfarm payroll employment rose by 248,000 in September, well above the 215,000 expected by analysts.
The leap in employment saw the headline unemployment rate fall by 0.2 percentage points, to 5.9pc. If Sep payrolls are revised up in line with recent history, today's number will be moved up to 288K.
That'll do.Traders betting on the strength of the US economy have sold the pound, and bought the dollar, on the back of the news.
Anders Svendsen, of Nordea, said that "the labour market continues to improve, which should ease some of the concerns following last month’s disappointment". In August, the US added just 142,000 jobs, since revised upwards to 180,000.
"Buoyant labour market data, plus signs that the US economy is growing strongly despite slower growth elsewhere in many countries, adds to the likelihood of the Fed being the first major central bank to hike interest rates", said Chris Williamson, chief economist at Markit.Yet the jobs report also contained some worrying datapoints.
The US labour force participation rate fell to its lowest level since 1978, while average earnings were stagnant on the previous month. Low wage growth and inflation mean that "there is no pressure on the Fed from the inflation side", said Mr Svendsen.
The data were released after key gauges of the UK's dominant services sector disappointed the forecasts of economy watchers. Analysts said that the weaker than expected report pointed to a moderation in UK growth.
The strength of the US jobs market also saw a fall in gold, which sunk against the dollar as the report was released.
telegraph.co.uk
The US Department of Labor said that total nonfarm payroll employment rose by 248,000 in September, well above the 215,000 expected by analysts.
The leap in employment saw the headline unemployment rate fall by 0.2 percentage points, to 5.9pc. If Sep payrolls are revised up in line with recent history, today's number will be moved up to 288K.
That'll do.Traders betting on the strength of the US economy have sold the pound, and bought the dollar, on the back of the news.
Anders Svendsen, of Nordea, said that "the labour market continues to improve, which should ease some of the concerns following last month’s disappointment". In August, the US added just 142,000 jobs, since revised upwards to 180,000.
"Buoyant labour market data, plus signs that the US economy is growing strongly despite slower growth elsewhere in many countries, adds to the likelihood of the Fed being the first major central bank to hike interest rates", said Chris Williamson, chief economist at Markit.Yet the jobs report also contained some worrying datapoints.
The US labour force participation rate fell to its lowest level since 1978, while average earnings were stagnant on the previous month. Low wage growth and inflation mean that "there is no pressure on the Fed from the inflation side", said Mr Svendsen.
The data were released after key gauges of the UK's dominant services sector disappointed the forecasts of economy watchers. Analysts said that the weaker than expected report pointed to a moderation in UK growth.
The strength of the US jobs market also saw a fall in gold, which sunk against the dollar as the report was released.
telegraph.co.uk
No comments:
Post a Comment