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Saturday, 6 May 2017

Employment data in the US above expectations

The report of employment in the world's largest economy were well above analysts' average expectations. The newly created jobs were 211,000 in April, and the unemployment rate was 4.4%.
However, wage growth, at a 2.5% annual rate, was slightly below analysts' average expectations.
In any case, the data suggest that investors are likely to witness a June interest rate rise as well as at least one more to year-end.
The data showed that the US labor market recovered after much weaker results in March. A month earlier, only 79,000 new jobs were created.
The result also exceeded the average expectations of analysts predicting 190,000 new jobs in April.
Despite the good data, the euro appreciated against the dollar as it was close to cross the psychological limit of 1.1000, days before the presidential elections in France.
And while similar levels of euro against the dollar indicate expectations for a near-certain Macron victory, a surprise result in favor of Le Pen, according to analysts, could send the euro between 3 and 6% down on Monday.

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