Today the US Department of Labor released its reports regarding the developments on the labor market in July.
According to the latest data, in July the
US unemployment rate remained unchanged at 3.7%.
However, the share of the economically active population increased.
The number of employed people rose by 164 thousand after growth of 193 thousand in the previous month.
The unemployment rate was anticipated to decline to 3.6%.
Even though the main indicator of employment met the estimates, more important measure
– the average hourly earnings change – turned out to be higher-than-expected.
In July the reading showed a monthly gain of 0.3% and a 3.2% advance on a year-on-year basis.
The report led to a slight improvement of treasury yields and provided support to the greenback
as wage growth boosts consumption and speeds up inflation.
After the labor market data was out, the US dollar index has been near 98.20
without returning to its previous highs.
Traders are going on the weekend without opening new deals as they try to assess the prospects
for the further movement of the American currency.
The quote is under pressure amid the escalating US-China trade conflict
after Donald Trump announced a hike of tariffs on China’s goods.
Besides, the President’s criticism of the Fed’s stance also weighs down the US dollar.
Trump does not like the regulator’s cautious approach
and calls for another round of the monetary policy easing.
Nevertheless, the greenback firmed against Canada’s currency.
The USD/CAD pair soared to its new records of many weeks above 1.3250
after the US Department of Labor’s key report was released.
Meanwhile, Canada’s trade balance in June exceeded the estimates registering a surplus of CA$140 million,
while the budget deficit of CA$300 million was forecast.
Oil prices also rose by 2.5%.
However, all this did not save the loonie, and the pair moved up to its high of June 20.
As the week comes to the end, Bitcoin has gained 6% in the last 24 hours and is trading near $10,500.
Active growth started at night on August 1 and got a maximal momentum in the morning.
Turnover has increased by 21% since June 31 which is an optimistic sign
for the cryptocurrency considering a positive dynamic.
It is too early to say that bulls rule the market, while the price is still below $11,800.
That is all we have for you today.
Have profitable deals and see you on our channel!