US NFP report for November was released at 1:30 pm GMT and was a key macro release of the day. Report was expected to show a higher employment growth than in October, as well as wage growth slowing down to 4.0% YoY - the lowest level since June 2021. However, there were some concerns whether the report will deliver onto those expectations after a string of weaker-than-expected jobs data releases for November, like ADP report, ISM employment subindices or Challenger report.
Actual data turned out to be a positive surprise. Non-farm payrolls increased by 199k while private payrolls increased by 150k in November. Annual wage growth slowed in-line with expectations but monthly wage growth turned out to be quicker than expected. The biggest surprise came from the unemployment rate, which unexpectedly dropped from 3.9 to 3.7%.
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- Non-farm payrolls: 199k vs 180k expected (150k previously)
- Private payrolls: 150k vs 153k expected (99k previously)
- Unemployment rate: 3.7% vs 3.9% expected (3.9% previously)
- Wage growth (annual): 4.0% YoY vs 4.0% YoY expected (4.1% YoY previously)
- Wage growth (monthly): 0.4% MoM vs 0.3% MoM expected (0.2% MoM previously)
When it comes to monetary policy, the report can be seen as hawkish and so is the reaction of the market. USD jumped in a knee-jerk move while GOLD and equities pulled back. However, the report is unlikely to have any impact on next week's FOMC decision, with US central bank likely to keep rates unchanged and stick to its previous narrative.
EURUSD slumped to a fresh daily low following better-than-expected NFP release. Source: xStation5
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