U.S. nonfarm payrolls increased 222k in June after rising 152k in May, revised form 138k and 207k in April, for a net 47k upward revision. The unemployment rate edged up to 4.4% versus 4.3% previously. The labor force rebounded 361k following the prior 429k drop, while household employment climbed 245 from the prior -233k. Average hourly earnings were up 0.2% last month versus May’s 0.1% gain, revised from 0.2%. The workweek increased to 34.5 from 34.4. Private payrolls increased 187k , with ADP at 158k, with the goods producing sector adding 25k, while jobs in manufacturing inched up 1k, and construction up 16k. The service sector added 162k workers. Government jobs rose 35k. The strength in the report will keep the FOMC on its normalization path.
The dollar initially rose, then quickly fell back following the employment report release, where non-farm payrolls rose a better than expected. Hourly earnings were up less than expected however, while the unemployment rate rose a tenth . EURUSD fell from 1.1410 to 1.1387 lows, then rebounded to one-week highs of 1.1434, as USDJPY printed near two-month highs of 113.87 from 113.65, then fell back to 113.50 lows.
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