Employment surges in US, USD lifted
The US economy added 243’000 new jobs in January, a jobs report showed on Friday. Non-farm payrolls rose at their fastest pace in nine months, and were much higher than expectations. In fact market consensus was for a lower number than December.
Data published by the Labor Department also showed the unemployment rate fell to a near three-year low, while private payrolls also jumped much more than expected. The report was strengthened further by revisions on November and December payrolls data, which were revised to show 60’000 more jobs than previously published.
The latest surge in employment in the United States gave further evidence that the economy was picking up and indicated that last quarter’s growth was extending to 2012.
Change in non-farm payrolls rose to 243’000 in January versus consensus for 150’000, from a revised 203’000 (previously 200’000) and the unemployment rate fell to 8.3% against expectations for an unchanged rate of 8.5%. Change in private payrolls surged to 257’000 from a revised 220’00 (212’000) against a forecast of 170’000.Manufacturing payrolls was also higher to 50’000 from 23’000 versus consensus for 10’000 while government payrolls fell to -14’000 from -12’000. Average weekly hours m/m inched higher to 34.5 from 34.4 while average hourly earnings m/m was unchanged at 0.2% as expected.
EUR/USD initially spiked to a session high at 1.3206 after the jobs report but plummeted more than a 100 pips to a day’s low of 1.3094.
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