The employment data released on Friday showed a slowdown in hiring in the US, which put pressure on the US dollar, which resumed its downtrend against the euro and other risky assets against the background of a not bright prospect of a slowdown in interest rates, which have been pretty much-traded conversations.
According to a report by the US Department of Labor, hiring growth in the US slowed down in November, but wage growth continues to amaze with its performance.
Thus, the number of non-agricultural jobs in November of this year grew by only 155,000, while a number of economists expected an increase in the number of jobs by 198,000. The unemployment rate remained unchanged at 3.7%, which fully coincided with the expectations of economists.
As I noted above, the annual salary increase was 3.1%, as was the case a month earlier, which is the best indicator since 2009. Data for October has been revised. Thus, the number of jobs in October increased by 237,000.
According to a report by the US Department of Commerce, wholesale companies in October this year replenished their stocks at a higher rate. Thus, the growth of inventories in the wholesale trade was 0.8% compared with the previous month, exceeding the forecast of economists, who expected a growth of 0.7%. In September, inventories increased by 0.7%.
Consumer estimates for the US economy have led to pressure on the US dollar. Even in spite of the fact that the situation remains favorable, the growth has stopped, which may negatively affect the economic situation in the future. Strong employment growth was the main driver for positive consumer ratings.
According to the University of Michigan report, the preliminary consumer sentiment index in December 2018 was 97.5 points against the final November value of 97.5 points. Economists had expected a preliminary index of 97.0 points.
The speech of the President of the Federal Reserve Bank of St. Louis, James Bullard also had a negative impact on the US dollar. Bullard believes that the Fed should not raise interest rates, and only as the economic outlook evolves, it is necessary to make adjustments to the policy course.
His representative for the role of Fed representative Brainard also said that gradual rate increases are still relevant only in the short term, hinting at a planned rate increase in December of this year, but the rate is increasingly dependent on the evolution of economic prospects.
Brainard also noted that there are both upward and downward risks to the prospects for the economy.
As for the technical picture of the EUR / USD currency pair, the breakthrough of resistance of 1.1450 will lead to a new wave of strengthening risky assets, with the renewal of weekly highs around 1.1480 and 1.1410. In the case of a downward correction, the lower limit of the new ascending channel is viewed within the support ranges of 1.1380 and 1.1360.
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