The much anticipated U.S. non farm payroll report was released today creating disappointment even though it was expected to show slower growth, however, the data showed no growth at all in employment in August.
The U.S. Labor department reported that despite economists forecast of 75,000 jobs to be added, the figure came out at zero, and July’s numbers were revised down to 85,000 from 117,000. The unemployment rate held unchanged at 9.1 percent as predicted.
Falling consumer confidence and overall uncertainty about U.S. recovery as a political fight over U.S. debt still remains strong in the minds of Americans, which resulted in the downgrade of the country’s AAA credit rating from Standard & Poor’s, discouraged U.S. businesses from hiring. A worsening debt crisis in Europe did not help. The weak data may put more pressure on the Federal Reserve to provide more monetary stimulus to spur the economy.
There is some bright side though, because although hiring cooled down in August, yesterday’s data showed steady jobless claims, and recently data showed relatively strong consumer spending, continued demand for manufactured goods and increases in industrial production, which suggest the U.S. economy will steer clear of recession.
After the NFP report, the Swiss franc surged against both euro and dollar. USDCHF fell, hitting a three week low of 0.7709 within a minute from 0.7795. EURCHF touched down to 1.0999 from 1.1131.