The NFP report for May has just been released. Data was expected to show another month of massive multi-million lay-offs. However, report turned out to be a massive surprise to everyone. Details of the report:
Change in non-farm payrolls: +2509k (exp. -8000k)
Unemployment rate: 13.3% (exp. 19.7%)
Wage growth: 6.7% YoY (8.6% YoY)
It should be said that real market expectations were probably lower after an ADP report suggested a drop in employment of "just" 2760k in May. However, the reading is impressive. Stock indices surged on the release with US500 reaching 3,150 pts. US dollar also caught a bid with EURUSD pulling back from 1.1330 to below 1.1300.
NFP report showed an unexpected 2.5 million increase in jobs in May in spite of ADP data suggesting a drop. Source: Bloomberg