U.S. Job Growth Increases in June

U.S. Job Growth Increases in June

U.S. job growth, increased last month as manufacturers and employers boosted hiring; confirming the economy has regained speed after a first-quarter recession, but tepid wages suggested the Fed will probably not hike interest rates soon.

Nonfarm payrolls increased by 287k in June, the largest gain since October, and May's payroll count was revised falling to 11k from the previously reported 38k, the U.S. Labor Department said on Friday.

On the other hand, the unemployment rate increased by 0.2% to 4.9%, the figure came slightly off market expectations, as more people entered the labor force. 

The U.S. dollar index settled at 96.30.

Meanwhile, data from the largest economies in the USA and China will help to know the economic situation before the ‘Brexit’ vote on 23rd June.

GBP traded below $1.2950 vs. USD, the worst level since January 2016, as the BOE will consider the first interest rate cut for more than 7 years this week.

The IMF said Friday that, ‘The Eurozone will grow at a slower pace in the coming years due to political and economic uncertainty following the Brexit.’ Euro declined to $1.1040 during Friday’s trading session.

Gold declined sharply on Friday, negatively affected by strong U.S. job data and the USD. Despite the yellow metal trading at its highest-level $1,366, it could drop slightly due to strong U.S. job data. On the other hand, the precious metal could touch new high levels and trade at $1,390 amid uncertainty around the Brexit.

Oil traded at its lowest level in two months, amid concerns over the global economy.  WTI traded above $45 and could pare its losses during the course of the week.

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