Monday, June 4, 2007

Nonfarm payrolls in the USA were above expectations in May

Nonfarm payrolls in the USA rose in May by 157K. The index was rather strong in comparison with the preceding reading (88K) and estimates (135000), which creates favorite background for dollar rate rise.
The unemployment rate did not change and was 4.5% in May. The index was up to analysts’ expectations.

Average earnings rose in May by 0.3%, which was up to expectations, but slightly above April reading (0.2%).

Nonfarm payrolls and the unemployment rate produce substantial effect upon the market. Both of them support dollar, when the first index increases, while the other decreases, and visa versa, the increase of the second index and decrease of the first one lay pressure on dollar.

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