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12:39 · 3 August 2018

USD weaker after mixed NFP

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The US NFP report did not impress investors showing an increase in employment of 157k, less than 190k that was expected. Wage growth stalled at 2.7% y/y – in line with expectations and the unemployment rate declined to 3.9% (just as expected). Although the June figure for jobs has been revised upwards, the overall tone of the report is somewhat negative as weak wage pressure means the Fed has a comfort of rising rates at a gradual pace. The US dollar declines after the report with EURUSD rising above 1.16. Emerging currencies gain more, the ZAR leads the pack gaining around 1%.

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