The non-farm employment change beat expectations, coming in a 390k (325k) for May. However, the U3 unemployment rate remained at 3.6% against the 3.5% expected. Thus, the job market remains strong. The Fed is banking on this to cushion the impacts of its rate hikes. This strength means that the Fed will keep 50bps on the table for this month's meeting and July's. The NFP, combined with the hawkish comments by Fed officials this week, has lifted the US 10-year Treasury, currently at 2.95%. Its weekly stochastic remains above 80 (green rectangle), implying that the momentum for further yield increases is still present.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.