The United States Non Farm Payroll (NFP) felt significantly. That breaks the expectation of having the sharp increase. Before, the market was so optimistic about the America economic recovery. 

They also quite sure about the Increase of The Fed’s interest rate that will be done quicker. However, now they are uncertain about that. The NFP just adds up only 266,000 in April. 

That was under the consensus estimation of 978,000. If that is compared to the US NFP in March, the result is declining. Furthermore, the data in that month was also revised a lot from 916,000 to 770,000.

The Unemployment Level is not Better 

The US unemployment level is also not that better. It increased by 0.1 percent, from 6.0% to become 6.1%. Before, many parties expected that the unemployment could be decreased and reached the 5.8% level. 

Vice versa, the Average Hourly Earnings was significantly increasing by 0.7 percent higher than the expectation of 0.0% and -0.1% in March. However, the market has been dissapointed to the NFP and unemployment rate. 

That is why; a report about the average hourly earnings is not becoming a focus of the market. An analyst from the Capital Economics gave a comment due to that US employment data. 

He said that there is an indication of lackness in the employment sector so there is a possibility that it will become the biggest obstacle for the economy. The data released must become a warning. 

The USD Also Falls

Generally, it is quite difficult to asses how big the weight that must be given on this American employment report. It is especially when the othe activities show that the economy recovery is fast. 

However, that data is like a warning that a recovery happened on the employment market is not as good as the consumption sector. Meanwhile, the US dollar also falls because of that. 

That main currency has been underpressured ahead of the US NFP report. It was falling significantly to its low level in two months. When this news written, the USD slipped for 0.68% to 90.277.

It was slapped yesterday morning. The NFP number was so far from the consensus expectation. Actually, the market has decreased its super high interest rate expectation and inflation. 

The Index of Dollar or DXY

The index of USD or DXY felt to its lowest level in a week. That was in the level of 90.74 at the beginning of the European Session yesterday. The consensus expectation will be released on the New York session. 

That was about the fantastic US payrolls numbers. That is why; many parties are worried if the actual data will be far from the hopes. Several other factors are also possible to dampen that release effect. 

It is especially if the consensus expectation becomes a reality. The consensus predicted that the Non Farm payroll data for April will reach the 978k level. It is based on a reason happened. 

The companies are in a race to increase their employees recruitment in line with the lockdown loose and the activity normalization in some countries. The fiscal stimulus help is also a supporting factor. 

A Release By The Initial Jobless Claim

A release made by the Initial Jobless Claim reported yesterday showed that the weekly unemployment claim numbers were drastically declining. The total claim was only 498k which is lower than the past period. 

That data release triggers the risk-on sentiment so that the Wall Street stocks are stronger and the USD us weaker. The same dynamic can happen again after the release of payroll data. 

Why? It is because greenback is included as the save haven that will be left by market amidst the global economy recovery. Furthermore, the Fed still in its decision to maintain the dovish bias.