The Shocking Truth Behind the US Job Market Revealed: Nonfarm Payrolls Revised Down by 818k!
In a surprising turn of events, the US Nonfarm Payrolls (NFP) data for the 12 months leading up to March 2024 has been revised down by a staggering 818k. This unexpected news has sent shockwaves through the market, with some speculating that there may have been leaks about the figure prior to its release. One thing is clear – the jobs market is not as strong as previously believed.
But that’s not all. The recent FOMC minutes from the July meeting have also sent dovish signals, further adding to the bearish sentiment surrounding the US dollar. Market experts are now contemplating the possibility of a rate cut in September, with some suggesting that a 50bp move may be on the cards.
As we wait for Federal Reserve Chair Jerome Powell’s speech at the upcoming Jackson Hole summit, all eyes are on the S&P Global PMIs for clues about the state of the global economy. While these PMIs may not carry the same weight as their US counterparts, they provide valuable insights into economic activity across developed countries.
The recent turmoil in the FX market has created an opportunity for traders to establish new positions. With the prospect of Fed easing looming large, it’s likely that USD shorts will continue to dominate the market. Despite being slightly above the December lows, trade-weighted USD measures suggest that the dollar bear trend is here to stay – at least for now.
In conclusion, the recent developments in the US job market and the dovish signals from the FOMC minutes have painted a bleak picture for the US dollar. Traders are advised to proceed with caution and consider taking advantage of the current market conditions to position themselves for potential gains in the coming months.