USD Finally Finds Some Bids on Positive Employment and Earnings Numbers

The US economic data was quite impressive today and the US Dollar has finally found some decent bids.

New jobs surged in September

The main economic data for today was released about an hour ago. The figures from Canada were a bit soft and the CAD is feeling the pressure. The numbers from the US, on the other hand, were pretty positive and the US Dollar is finally finding some solid ground to make a comeback, although, I don’t expect much upside action in the USD until the election day next Tuesday. Let’s have a look at the numbers.

Canada Actual Expected Previous
Unemployment Rate 5.8% 5.9% 5.9%
Employment Change 11.2K 12.7K 63.3k
Participation Rate 65.2% 65.4%
Average Yearly Earnings Index 1.9% 2.3% 2.2%
US Actual Expected Previous
Unemployment Rate 3.7% 3.8% 3.7%
Employment Change 250K 194K 118K
Participation Rate 62.9% 62.7%
Average Hourly Earnings Index 0.2% 0.2% 0.3%
Average Yearly Earnings Index 3.1% 3.1% 2.8%

As you can see from the tables above, the Canadian unemployment rate declined to 5.8% from 5.9% previously. But, the participation rate declined by 0.2%, which means that if the number of people claiming benefits remained the same, unemployment would be higher at 6.0%.

On the other hand, the US unemployment remained unchanged today, but the participation rate increased by 0.2%, which means that the unemployment would have been lower if the participation rate didn’t change. Besides, the higher yearly earnings are even more important and the new jobs surged by 250K, so the USD is retracing higher after trading on a bearish trend for two days.

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Skerdian Meta
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.

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