The US economy gained 304K, much more than expected in January. However, there were significant downward revisions. Wages are up only 0.1% MoM, below expectations, but are up 3.2% YoY, as expected.
The US Dollar is initially higher. EUR/USD drops toward 1.1450, GBP/USD is around 1.3050, and USD/JPY around 109.00.
U-6 came out at 8.1%, far worse than 7.6% last time. The unemployment rate is up to 4%, worse than expected, but with an increase in participation.
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Here is the move on EUR/USD:
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The US was expected to report an increase of 165K jobs in January, around half the level reported in December: a blockbuster gain of 312K. However, real projections may are probably higher. The private sector ADP NFP came out at 213K, above expectations.
The Federal Reserve made a dovish shift in its decision on Wednesday. The central bank now pledges patience on the next moves in interest rates due to the global slowdown and growing uncertainty, also due to the government shutdown.
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