Rand firms as US jobs data comes in weaker than expected
Highly watched nonfarm payrolls indicate a healthy US economy, but makes a more hawkish stance by the US Fed less likely
The rand was slightly firmer on Friday afternoon as US nonfarm payroll data came in lower than expected, making it less likely that the US Federal Reserve will hike rates more aggressively than is presently priced into the market. Nonfarm payrolls rose by 134,000 in September from a revised 270,000 in August and less than the predicted 201,000. The unemployment rate improved to 3.7% from 3.9%. Average hourly earnings, the closely-watched gauge for inflationary pressures in the US economy, rose an annual 2.8% from 2.9%, as expected. This once again indicates that inflationary pressures remain muted in the US. Oanda analyst Craig Erlam said an earnings number of 3% would have gotten people excited. “But the lower number certainly raised significant questions about hidden slack in the economy,” he said. Over the longer term, wage growth may pick up, notably against the background of Amazon promising to raise its minimum wage, with other employers urged to follow suit, Erlam said. Analy...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.