NFP (Nonfarm payrolls) increased by 157,000 jobs last month instead of forecasts about 190,000 jobs.
Further, the unemployment rate fell one-tenth of a percentage point to 3.9 percent in July. Experts interpret the slowdown in hiring as a shortage of workers and not the result of trade tensions, which have escalated in recent days. The shortage of workers is steadily pushing up wages.
Week Outlook
BOJ took dovish steps towards a more sustainable massive stimulus programme and adopted a forward guidance on rates.
As traders widely expected, Bank of England raised interests from 0.50% to 0.75% after nine years on Thursday. The decision was unanimous and came after a decade following the financial crisis. The unanimity of the vote was a fact that surprised experts. However, ‘The Old Lady of Threadneedle Street’ signalled no rush for the next hike ahead of Brexit.
The economy strength and the uncertainty linked to the Brexit remain the most contentious issues.
FED (FOMC) held interest rates unchanged on Wednesday, after concluding its two-day policy meeting, as expected. Nevertheless, the decision paved the way for a September hike.
Analysts support the meeting was mostly unexciting although FED was more positive on the economy, characterizing it as “growing”.
Sources: Reuters, CNN money, the guardian
PLEASE NOTE The information above is not investment advice.