Weak US labor statistics questioned the Fed raising rates in June
EUR / USD pair tried to break up 1,1435-65 band after the release of weaker-than-expected US employment report. Weak data cast doubt on the steady recovery of the economy and reduce the likelihood of higher interest rates by the US Federal Reserve meeting on June 15 because the state of the labor market – one of the key indicators that the Fed is focused when deciding on monetary policy.
“This does not mean that the dollar can not climb. Seasonally is a great month for the US dollar, which fell from the beginning of the year. If the US dollar will be able to resist, despite data on jobs, I think the dollar rally will continue, “- says Adam Button, Managing Editor of ForexLive.
Strengthening of the US dollar this week stopped almost 7 percent drop in the currency, observed since the beginning of the year.
The Labor Department said that 160 thousand. Jobs, much less than the expected 202 thousand. In March, the number of employees increased by 208 thousand was created in April in the non-agricultural sector of the US., The rate has been revised from preliminary 215 thousand.
Meanwhile, the US unemployment rate in April remained unchanged at 5.0%, as predicted by experts.
The report also showed that the average hourly wage increased by 0.3% in April, which coincided with forecast, after the increase of 0.2% in March.
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