The much anticipated U.S. non-farm payroll report was released today giving markets a much needed sigh of relief as the data showed that more jobs were created in July than had been forecast and the unemployment rate fell as well coinciding with rising wages.
The news eased market fears that the world’s largest economy was slowing down and was in danger of going into another recession.
Data showed that U.S. employers added 117,000 more jobs in July which was much more than the mere gain of 85,000 that had been predicted by economists. The numbers beat June’s 46,000 increase in jobs.
Meanwhile, the unemployment rate dipped to 9.1 percent from the previous 9.2 percent, and average hourly earnings climbed 0.4 percent.
The report should help wipe out some of the investors concerns about the health of the U.S. economy and that it is not all doom and gloom since it is evident now from the data that the U.S. economy is not in a recession.
It is hoped that along with job creation, increased consumer spending will follow, which will help boost economic growth further.
After the NFP data was released, risk sentiment was back on and investors turned to investing in more risky currencies, helping boos the euro and sterling.