Nonfarm Payrolls hit 303k in March
The US labor market demonstrated significant strength in March, with Nonfarm Payroll figures reaching an impressive 303k, far above the predicted 200k. This performance, the strongest in 10 months after revisions, reflects a robust and growing job market. Such data is crucial for traders as it provides insights into economic health and can influence currency and market movements.
US Unemployment Rate lower than expected at 3.8%
Consistent with the robust Nonfarm number, the US Unemployment Rate dipped to 3.8%, outperforming forecasts of 3.9%. This lower-than-expected rate suggests a tighter labor market and potentially increased consumer spending power. After last month’s higher-than expected reading, this reversion back is an even greater surprise as the effects of high interest rates have yet to dampen US employment.
US Treasury yields near year-to-date highs
Intraday friday, US 10YR Treasury yields are trading close to their peak levels since November 2023. These higher prices for the benchmark US interest rate reflects sentiment that the Fed Funds rate controlled by the US central bank may remain above 5% for months to come. High yields can attract foreign investors, potentially strengthening the US dollar.
Gold price trades comfortably above $2,300
Following the release of March’s employment figures, gold futures fell slightly before reversing again – showing no regard for surging interest rates. Traditionally, gold ,as a non-interest-bearing asset, tends to move inversely to rates like the 10-year yield. However, on this recent run, gold has shown little correlation to any other asset as it continues through all-time highs above $2,300.
US dollar trading near highs in several forex pairs
The US dollar is performing strongly, rising immediately after the employment release. There was a slight pullback mid-day but the dollar continues to trade within about 100 pips of its year-to-date highs against several major currencies, including the EUR, GBP, CHF, and JPY.
