Unemployment rate surged in April

USD Reverses Higher, With the Jobs Report Not As Horrible As Expected

Posted Friday, May 8, 2020 by
Skerdian Meta • 1 min read

The world economy is going down the drains with the extended lock-down as everything remain closed, apart from some essential businesses. The situation has deteriorated considerably from March to April, with the unemployment rate jumping to 14.7%, from 4.4% in March.

The unemployment rate was expected to jump to 16%, as the median forecast and the layoffs were also slightly lower than estimated. Markets saw this as a positive thing for the USD, which has climbed around 30 pips higher now, from the bottom earlier on. Below is the US jobs report:

US Employment Report, April 2020

  • Nonfarm payroll -20,500 vs -22,000K. March revised down to 870K from -701K previously reported
  • 2 month payroll revisions-214K
  • Private payrolls -19,520K versus -22,000K estimated
  • Unemployment rate 14.7% vs 16.0% estimated
  • Manufacturing jobs -1,330K vs -2,500K estimated
  • Average hourly earnings MoM 4.7% vs 0.4% estimated
  • Average hourly earnings YoY 7.9% vs 3.3% estimated
  • Average weekly hours 34.2 vs 33.5 hours
  • Labor force participation rate 60.2% vs 61% estimated
  • Labor Department said large number of workers classified as employed, but absent. That likely The unemployment rate at 8 number better than estimated him

The US labor department is out saying that the unemployment rate would be around 5% higher if workers were classified correctly. That would take the unemployment rate to near 20% (19.7%), which is enormous. So, chances are that things might be worse than expected, but traders are leaning on the USD still.


Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
GBP/USD was rejected by the 50 SMA early in December, but is quickly back at it as the USD resumes decline on softer FED rhetoric
2 months ago
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments