US Nonfarm Payrolls Beat Expectations in June

Nonfarm Payrolls (NFP) in the United States (US) increased by 147,000 in June, as reported by the US Bureau of Labor Statistics (BLS). This surpassed the market expectation of 110,000 and followed a revised increase of 144,000 in May.

The Unemployment Rate dropped to 4.1% from 4.2%, while the Labor Force Participation Rate decreased to 62.3% from 62.4%. Average Hourly Earnings growth slowed to 3.7% from 3.8% in May, falling short of the estimated 3.9%.

The BLS revised April and May employment figures upwards, resulting in a combined increase of 16,000 jobs compared to previous reports.

Following the positive employment data, the US Dollar Index surged by 0.6% to 97.35.

Analysts forecasted a rise of 110,000 in Nonfarm Payrolls for June, with the Bureau of Labor Statistics releasing the data on Thursday at 12:30 GMT. The report is crucial for assessing the timing of the next Fed rate cut and the USD's performance.

Economists expect Nonfarm Payrolls to increase by 110,000 in June, with the Unemployment Rate likely rising to 4.3%. Average Hourly Earnings are projected to grow by 3.9% year-over-year.

Traders are closely monitoring the NFP data, as a reading below 100,000 and an increase in the Unemployment Rate could signal a weakening labor market, potentially leading to a Fed rate cut. Conversely, strong data could push back against expectations of multiple rate cuts.

According to the source: FXStreet.