US non-farm payroll spikes to five-month-peak, rate cut still expected


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US non-farm payroll spikes to five-month-peak, rate cut still expected

On Friday, the 5th of July 2019, non-farm payroll data released by the US Labor department had revealed that the US economy had added 2,24,000 jobs in June after adding only 75,000 jobs in May, widely beating an analysts’ forecast of 1,60,000.

Besides, other employment data had indicated that US private sectors had added about 1,91,000 jobs in June after posting a growth of only 83,000 new jobs in May. However, US unemployment rate had moderated slightly to 3.7 percent from 3.6 percent a month earlier, but still remained closer to its 49-year-low figure, witnessed during the era of 1960’s Cold war.

Aside from that, painting a decent landscape over US labor market, US average hourly earnings remained unchanged to 3.1 percent from a year earlier, amid a bundle of disdainful factory data and declining factory orders alongside investments.

Nonetheless, despite a strong US employment data released on Friday (July 5th), financial markets had been betting on a 50-basis-point rare rate cut as early as this month, first of its kind since the era of great financial depression of 20008 and 2009, while multiple analysts had been quoted saying that chances were running dry Fed would cut interest rate as soon as this month and called May’s job data a ‘fluke.’