- WTI bulls move on USD weakness after NFP.
- WTI hits new highs and technical indicators turn bullish again.
He WTI It has been volatile in New York trade on Friday, trading with little sense of direction between $71.24 and $72.36 on the day so far. The US dollar and risk appetite are the drivers behind today’s Non-Farm Payrolls report.
Dollar is suffering against a weaker than expected headline in NFP
nonfarm payrolls
Nonfarm payrolls (NFP) in the US rose by 209,000 in June, the US Bureau of Labor Statistics reported on Friday. This was below market expectations of 225,000. The May increase of 339,000 was revised down to 306,000.
The unemployment rate fell to 3.6% from 3.7% forecast and annual wage inflation, measured by average hourly wage, held at 4.4%, versus 4.2% estimated by analysts. Lastly, the labor force participation rate remained at 62.6%.
”We continue to expect rising interest rates from early 2022 to curb demand for workers before boosting unemployment later this year. But the easing of labor demand has yet to be reflected in any of the headline numbers,” analysts at RBC Economics noted.
As noted in the minutes of the latest FOMC decision in June, policymakers continue to view current labor market conditions as too tight and wage growth too high for inflation to sufficiently return to normal. target of 2% over time. We expect the Fed to raise the federal funds rate 25 basis points in July.”
Despite the mixed data, the Fed’s rate hike odds in November fell to 39% from 45% after non-farm payrolls and the dollar is in retreat, benefiting the oil price as follows:
WTI Technical Analysis
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
