Key report of the day and the week - NFP report for May - has been released. While market consensus was pointing to an addition of 660k in May, yesterday's ADP release (978k) hinted that a beat may be coming. However, NFP report did not live up to expectations. Key highlights of the report:
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Non-farm payrolls: 559k vs 660k expected
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Wage growth: 2% YoY vs 1.6% YoY expected
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Unemployment rate: 5.8% vs 5.9% expected
As one can see, the report not only failed to confirm ADP estimates but also failed to meet market expectations. Last month's reading was revised higher from 266k to 278k. When it comes to market reaction, European indices and US equity futures jumped in a knee-jerk move. US dollar took a hit with all major currencies gaining against the greenback. EURUSD jumped from around 1.2116 to above 1.2150.
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EURUSD rallied following the release of the disappointing NFP report for May. Main currency pair jumped above 1.2150 and is looking towards the 1.2165 handle. Source: xStation5
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