Employment goes up as the US unemployment rate falls to 3.9%

Mixed US Employment Report Leaves Forex Traders Puzzled

Posted Friday, May 4, 2018 by
Skerdian Meta • 1 min read

The US employment report was published while I was posting the midday forex brief. As I mentioned at the end of that forex update, the employment part of the report was looking pretty good. The non-farm employment change increased by around 60k from last month, albeit, still below expectations. The unemployment rate was the biggest surprise; it was supposed to fall to 4% from 4.1%. It was very unexpected to see it fall to 3.9% this time.

That was great, but as I explained on the first section of the midday brief, wages are what the FED is most interested in. The wages (average hourly earnings) were expected to come out at 0.2%, down a point from 0.3% the previous month. Well, the wages came out even softer at 0.1% this time month/month.

We finally booked profit on this signal

The yearly number also declined to 2.6% from 2.7%. That’s what gave the USD a kick lower, which looks a bit strange after two weeks of trending upwards on a solid uptrend. Our USD/JPY signal hit SL (stop loss) and the Buck is rolling again now, higher obviously. It started as a bearish move, but it didn’t last for long.

The buyers returned and the USD is getting new highs now. I opened a sell signal in GBP/USD right at the 50 SMA, which I highlighted in the midday forex brief and that signal just hit TP (take profit), together with the sell signal in AUD/USD. So, we came out as winners after this report.

Check out our free forex signals
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta is our Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments