The US gained 2.509 million jobs in May, beating all estimates and lowering the chances for further Fed support, which should strengthen the greenback, FXStreet’s analyst Yohay Elam reports.
Key quotes
“The Nonfarm Payrolls report for May was initially hard to believe – all those surveyed by Bloomberg and Reuters had foreseen a loss of positions in May and the US gained 2.509 million jobs. The unemployment rate fell to 13.3%, defying expectations for a leap toward 20%.”
“The Fed strives to achieve full employment and these labor figures are going in the right direction. Therefore, it removes the need for the Fed to act. Without further money printing, the dollar may gain ground.”
“This NFP report decreases the odds for further government stimulus. Democrats wanted an additional $3 trillion and Republicans seemed to settle for $1 trillion. That may be scrapped. Without further funds, the dollar may rise.”
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