U.S. job growth is expected to pick up stronger in May, driven by the resumption of economic activity and progress in vaccination programs.
Awaiting the release of the US NFP jobs report, investors re -examined the readings of economic data that were released this week to serve as a guide for tonight’s data readings.
Highlighting the data that has been published, overall the figures recorded in May are encouraging.
On Tuesday, the market was marked by readings of ISM survey manufacturing data showing a stronger recovery in manufacturing activity last month.
This strengthening was supported by the reading of non -manufacturing ISM data on Thursday which also showed positive growth in services. However, the employment component in this sector is seen to be slightly declining.
However, investors are not just looking at such data to change their confidence. The ADP report reported significant growth in private employment which recorded an increase of nearly 1 million last month.
In fact, the number of jobless claims also showed a drop below 400,000 for the first time since the pandemic began, also supporting market optimism for positive expectations in tonight’s NFP.
To push the US dollar higher, every component in tonight’s jobs report needs to show stronger growth in addition to the unemployment rate displaying a decline.
However, if any component of the job fails to meet expectations, the US dollar may return to record losses.
So, what are your expectations for tonight’s NFP employment report?
