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Non-Farm Payrolls Beats Expectation: US Dollar Rallies

US Non-Farm Payrolls Talking Points:

  • Non-Farm Payrolls out of the US rose 225k for the month of January, beating/falling short of the expectation of 165k.
  • US Dollar continues bullish 2020 momentum on US Non-Farm Payrolls.
  • Although unemployment rose by 0.10%, it was accompanied by a rise in the labor force participation rate of 0.20% – highest since 2013.

US Non-Farm Payrolls Beats Expectations

The Bureau of Labor Statistics released their monthly measure of the US jobs market this morning. NFP (Non-Farm Payrolls) reflects the surveyed net change in US employment excluding farm workers, non-profit organization and private household employees. This month brought a change of 225k versus the expected 165k, coming in following a poor finish to 2019.

US Labor Market

Source: Bloomberg

The NFPs is one component of the broader Employment Situation report that includes additional measures such as the unemployment rate and average hourly earnings figures. These prints came in above/below expectations at 3.60% and 3.10%, respectively. Manufacturing payrolls in the US fell by 12k. This contradicts Monday’s ISM Manufacturing sector report which beat the expectation and marked a turning point in the recent manufacturing lull out of the US.

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US Dollar 30-Minute Price Chart

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Following the 8:30 AM release, gold whipsawed between support and resistance winding up relatively unchanged and the US Dollar is back up to retest session highs at a critical pivot zone. Stay up to date with DailyFX’s economic calendar as next week brings US consumer price index (CPI) and retail sales advance.

–Written by Austin Sealey, Market Analyst for DailyFX.com