Data on the U.S. labor market yesterday resulted in increased volatility on stock and currency markets. Thus, the unemployment rate fell to 6.1%, which is 0.2% less than in the previous month and is a six-year lows. At the same time, was published the data on non-farm payrolls, the number of which increased in June by 288 thousand against the forecast of 214 thousand.
Experts point out that the unemployment rate is still higher than the 4-5% in 2007, before the recession, and new job growth occurs mainly in low-paying sectors, and production added only 16 thousand, and construction - 6 thousand jobs. Moreover, given the number of people who work part-time due to the inability to find a full-time work, the unemployment rate is about 12.1%.
Despite the improvement in macroeconomic indicators, we expect that the growth on American stock market will be changed by correction soon and expect a decline by 10-15% in the medium term.
Wish you the profits!
FXFINPRO Capital Analytical department.