The report showed 4.8 million jobs were added in June with the unemployment rate falling to 11.1% from 13.3%. The prior month saw an upward revision to 2.7 million from originally reported 2.51 million increase.
The June non-farm payrolls report was another solid one and risk assets are loving it, while safe- haven gold is hating it. US index futures have risen, and the dollar has dropped against risk-sensitive currencies, as we had discussed this possibility earlier
The report showed 4.8 million jobs were added in June with the unemployment rate falling to 11.1% from 13.3%. The prior month saw an upward revision to 2.7 million from originally reported 2.51 million increase. Needless to say, these numbers were comfortably above estimates. NFP was expected to reveal 3 million jobs had been added on the month.
This jobs report looks impressive given how the US economy has struggled to re-open with virus infections spiking in several States last month. So, it is clearly good news and boosts the V-shaped recovery narrative. That said, the virus situation got out of control again in several US states since mid-June. So, the next month could be a completely different picture. But right now, investors are focusing on this report and evidently, they are impressed.
This is how the markets have reacted so far:
Watch out for some profit-taking in risky assets later on in the session as the US is closed on Friday for Independence Day holiday. However, the dips could be shallow given the positive employment report.