Dollar Holds onto Gains as NFP Disappoint

US nonfarm payrolls released today were disappointing for dollar bulls, but that did not prevent the US currency from rising. The thing is that, while employment growth was below forecasts, the unemployment rate and wage inflation were better than the market has counted on. Now, analysts speculate how today’s data will affect the policy decision that the Federal Reserve should make on September 17.
Nonfarm payrolls demonstrated growth of 173k in August, well below the predicted level of 215k. On a positive side, the July’s increase was revised from 215k up to 245k. Unemployment rate ticked down by 0.2 percentage point to 5.1% while economists had anticipated a drop by 0.1 percentage point. Average hourly earnings rose 0.3% while forecasters predicted the same 0.2% rate of growth as in the previous month. (Event A on the chart.)


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