US jobs figure beats forecast in July

US jobs figure beats forecast in July

US jobs data surprised to the upside in July, despite some signals of slowing down due weak numbers of indicators from jobs sector released this week.

US Non-Farm payrolls jumped to 209K in July, beating forecast at 181K but still below previous month’s release which was revised upwards to 231K from 222K.

Average Hourly earnings came along with expectation at 0.3% in July and above 0.2% in June m/m, while annualized figure came at 2.5% in July, above forecast at 2.4.

Unemployment in the US decreased according to forecast to 4.3% in July, from 4.4% in June.

The US dollar was lower across the board after solid US jobs data release and remains under pressure as markets are trying to fully digest the data.

Fed remains in traders’ focus as the central bank is expected to signal start of winding down its massive portfolio at its big meeting in September.

The IS central bank will continue to closely monitor the process of increase in wages, as slow pace in increasing salaries and low inflation continue to weigh on Fed’s plans for hike interest rates once more in 2017. The Fed needs to translate today’s numbers into inflation in order to get clearer picture about the strength of jobs sector and degree of its support for Fed’s plans to start tightening the monetary policy.