There was an air of disappointments last Friday when the Non Farm Payroll Report was released. Earlier, economists and private analysts forecasts a huge increase in the Non Farm Payroll for May. The consensus was an increase to 530k, an increase of 240k jobs compared to the 290k jobs increase in April.
The Non Farm Payroll added only 431k jobs and this inflated Non Farm Payrolls are largely attributed to temporary government census workers.
Private Payrolls was expected to increase to 41,000 jobs but the data released by US Labor Department showed an increase of less than 41,000 jobs.
Non Farm Payroll Report caused the Dollar and the Yen surge sharply against their major counterparts in early US session. The below the expectation increase indicates that the US economic recovery may be slower than expected.
The increase in the Dollar and the Yen is also due to the fear that the Europe Debt crisis is expending. There are talks that Hungary may need a $24 billion international bailout to avert default in 2008.
Unemployment Rate
The unemployment rate dropped to 9.7%, better than expected versus 9.9% from April. This is a consolation to the poor than expected Non Farm Payroll.
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When are we going to get some good news.Reply
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