NFP Readings Away From The Fire, Market Reaction Is Uncertain! - Kakiforex | Forex markets for the smart money. NFP Readings Away From The Fire, Market Reaction Is Uncertain! NFP Readings Away From The Fire, Market Reaction Is Uncertain!

June 5, 2021

NFP Readings Away From The Fire, Market Reaction Is Uncertain!

 Unexpectedly, the readings of the US NFP jobs report which are expected to rise strongly in May have disappointed the market once again and thus plunged the US dollar trade lower.


Today, the U.S. Department of Labor has just released the latest May employment data awaited by researchers. Based on the latest government employment report, employment data still recorded a recovery although not as expected with the NFP reading rising by 559,000.


Even so, this figure is far from what economists expected. Based on a Dow Jones survey, economists are targeting NFP data to record an increase of 671,000. However, the unemployment rate dropped to 5.8%from 6.1%, which is better than the estimated 5.9%.


The disappointment that occurred in April continued into May. April's revised data at 278,000 is still far from the initial estimate of 1 million.



NFP data so far has not had a significant impact on the stock market. The futures stock market still posted gains with investors continuing to bet that the measured employment rate of rise would keep the Federal Reserve from raising interest rates and tightening monetary policy.


The reduction in Covid-19 cases and the ongoing vaccination program have prompted leaders to relax the restrictions imposed. The economy grew at 6.4% in the first quarter and is on track to continue growth.


The U.S. economy has so far recorded a job recovery of about 14.3 million of the 22 million jobs lost since the outbreak of this pandemic.


The US dollar index, which measures the greenback against other currencies, continued to decline 0.21% to an exchange rate of 90.31 as of 9.00 p.m.