Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

logo
Analysis

NFP: Only 209K new jobs!

BY Janne Muta

|July 7, 2023

The recent employment-related data suggested the labour market was still strong. However, this time the analyst consensus got it right: With only 209K new jobs added, the labour market could be cooling. While one data point doesn’t create a trend the significantly lower NFP number together with a stagnating wage growth suggests the peak in hiring in the US could indeed be here. The unemployment rate remained unchanged and the average hourly earnings m/m ticked higher by 0.1% to 0.4%.

Inline Question Image

Analysts expected to see the jobs growth slowing down significantly from a month ago but now the NFP number didn’t even reach the analyst predictions. This raises concerns that the US economy could be headed to a period of cooling economy with the Fed that has promised to keep on fighting inflation.

The market reaction is mixed. Equities are see-sawing after the NFP release. This indicates that even though the July 25 bp rate hike is widely expected some investors aren’t ready to sell the stocks in the hope that the lower-than-expected employment number may deter the Fed from hiking rates over the rest of the year. The USD sold off allowing gold to react positively

Trade Safe!

Janne Muta
Chief Market Analyst
TIOmarkets

Tio Markets UK Limited is a company registered in England and Wales under company number 06592025 and is authorized and regulated by the Financial Conduct Authority FRN: 488900

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

DISCLAIMER: TIOmarkets offers exclusively consultancy-free service. The views expressed in this blog are our opinions only and made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and its affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances, or needs. The content has not been prepared in accordance with any legal requirements for financial analysis and must, therefore, be viewed by the reader as marketing information. TIOmarkets prohibits duplication or publication without explicit approval.

image-35e46d7235a6e5e76853cfbb4fdb2b38d7e320d8-150x150-png
Janne Muta

Janne Muta is a seasoned market analyst and trading educator with a M.Sc. in Finance. His strategies integrate macroeconomics with technical analysis and he shares his knowledge with the trading community.