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Nonfarm Payrolls Depress Dollar

March 7, 2008 by

Dollar went straight down today on the currency market after the U. S. Bureau of Labor Statistics released its report on the February’s stressed employment situation. EUR/USD reached 1.5454 — a new historical maximum on the release, but then corrected significantly and now (as of 16:00 GMT) is trading at 1.5345.

Nonfarm payrolls in February decreased by 63,000 compared to the 22,000 decrease in January. Market analysts forecasted 25,00 growth for the last month, but they failed to predict such a bad outcome. Surprisingly enough, unemployment rate became lower after February and is now at 4.8% against 4.9% last month. For some unknown reason overall unemployment rate decreases while nonfarm payrolls decrease and the jobless claims grow. Maybe workers are moving into farming sector in U.S.?

2 Responses to “Nonfarm Payrolls Depress Dollar”

  1. Lea-Marie S.

    Official statistics for US unemployment should be read tongue-in-cheek: the unemployed are only counted so long as they are drawing unemployment checks. That means that if a person’s unemployment has expired, they are no longer in the system. In reality, true unemployment rates may be far higher. A much more accurate indicator of true US unemployment is the break-down of consumer spending. As people have to support more members of their families, less is spent on luxury items, and more is spent on consumer necessities such as food and gas. Looked at that way, the overall statistics regarding prices on consumer goods and services going up while unemployment goes up makes more sense.

    Reply

  2. Andrei

    Actually unemployment rate error, about which you are talking, is relatively constant. So, the changes of the rate wouldn’t be bothered with this error.

    Reply

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