USD Daily News

Non-Farm Payrolls Data Supports US Economic Recovery

Monday, 4 Apr 2011

The jobs report for March showed a gain of 216K jobs on expectations of 191K new jobs added. The report was further supportive as the February numbers were revised higher to 194K from 192K. The unemployment rate surprisingly dropped to 8.8% from 8.9%. Also showing improvement was the ISM Manufacturing PMI which came in above expectations at 61.2 with economists forecasting only 61.1.

It is difficult to deny the improvement shown in the US economy. Five consecutive months of job growth boasts well for the economic recovery. The pickup in labor market conditions should now begin to influence the Federal Reserve and the wording in the Fed's next statement could contain a more upbeat tone, emphasizing the labor market's improvement in contrast to the consistent stubbornness of unemployment that is typically highlighted.

Given last week's group of Fed members that came out in in favor of tightening US monetary policy and scaling back the Fed's $600B quantitative easing program, Friday's strong jobs data will bring to the forefront the debate for policy normalization in the US. Thus today's speech by Fed Chairman Ben Bernanke in Atlanta will carry extra significance in the FX markets. Should Bernanke come out with a more hawkish tone, this could be the beginning of a turnaround for the dollar.

Current Time: 11/27 11:29 GMT
# Time $€£¥ Event Per. Prev. Fore. Act. Imp.
14:30USD+ FOMC Member Evans Speaks***4
00:15USD+ Fed Chairman Bernanke Speaks***5
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