Urgent: US unemployment data is released and moves the markets

US unemployment data posted positive results while disappointing initial employment data was released, with the US economy still awaiting the release of employment data tomorrow.

unemployment data

The data revealed that 200,000 Americans applied for unemployment benefits, while analysts at Investing.com expected 210,000 applications for unemployment benefits.

Employment data from ADP

Initial employment data at US companies posted the slowest pace of recovery since the pandemic era in May, ADP said Thursday.

Employment in the private sector rose only 128,000 in the month, well below the estimate of 300,000 jobs according to Investing.com experts, and down from the downwardly revised figure of 202,000 in April, which was initially reported as a gain of 247,000.

The massive downturn in workers is the worst month since the mass layoffs in April 2020, when companies brought more than 19 million workers home as the COVID-19 outbreak brought economic paralysis. According to the ADP tally, which usually differs somewhat from government figures, salaries have increased by about 500,000 per month over the past year.

greater fear

The May employment slowdown comes amid fears of a broader economic downturn. Inflation that is hovering around a 40-year high, the ongoing war in Ukraine and the Covid-induced lockdown in China, which has since been lifted despite the circumstances, have generated fears that the US may be on the brink of recession.

Markets now

Gold contracts are now trading at $1857, an increase of 0.45%, an increase of nearly $8.8, while the spot contracts for the yellow metal rose 0.47% to record $1855.24 an ounce.

On the other hand, US treasury bond yields continued to decline by 1.04% to record 2.900%, supported by a decline in the US dollar index by 0.37% to record 102.145 against a basket of foreign currencies.

At a time when the euro rose by 0.48% to record 1.0697.

Crude oil prices fell today to $114.58 a barrel, down by 0.61%, while Brent oil fell to $115.68 a barrel, down by 0.55%.

The Turkish lira fell against the dollar by 0.48%, to record 16.4746 lira / dollar.

Reasons for the dollar’s decline

In addition to the negative initial employment data, the dollar index’s rise began to be reversed yesterday, with the release of statements by Fed member Rafael Bostic, in which he talked about the necessity of stopping the interest rate hike in the month of September to protect the economy from recession.

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