Fundamental analytics

Restrained market reaction to weak labor market data

This is the first Friday of the month, and a monthly employment report comes out in the United States. Last year and this year we spent a lot of time talking about why this report is so important for markets and why it affects the market volitility. However, it should be noted that in recent months, the impact of this data on FOREX has significantly decreased and looks like this is what happening on today trading session. But lets go straight to the prints.

US employment growth slowed in November, and monthly wages rose less than expected, indicating some overheating in US economic activity that could support expectations of lower interest rates from the Federal Reserve in 2019. A report from the department of labor showed that the number of jobs in the non-agricultural sector increased by 155,000 jobs in November, which is below economists' expectations of 200,000 people.

The data for September and October were revised to show 12,000 jobs added earlier than reported. The unemployment rate remained unchanged at almost a 49-year low of 3.7 percent, as more and more people came into the labor force.

The average hourly gained 0.2 percent in November. In October, wage incomes were revised to 0.1 percent from a previously registered 0.2 percent. For 12 months to November, wages increased by 3.1 percent, which corresponds to jumps in October, which was the biggest gain since April 2009.