The monthly employment report showed an increase of 559k jobs, worse than the expected 645k and weaker than might have been expected from other indicators. On average, the US labour market has added 416k monthly since September, against a long-term growth trend of about 200k. In other words, we see a recovery in the market, but it is hard to talk about a V-shaped recovery.
The situation in the construction market is interesting, where employment fell by 20k in May after a reduction of 5k in April. It doesn’t sound like much of a housing boom, as builders are pausing in response to price hikes rather than ramping up volumes.
As we noted earlier, stock markets are acting from the “the worse, the better” idea: a slowdown in the economy will delay talks to remove support programmes. This is good news for stock markets, which have already weathered the downturn yesterday, but bad news for the dollar, which turned down immediately after the NFP.
Source: FXPro