The US labor market is still pretty robust | 09 1月 2023

09 1月 2023, USD/JPY

The US labor market is still pretty robust

USDJPY trading plan:

The U.S. economy maintained a strong pace of job growth in December, with the unemployment rate falling to 3.5%, but higher borrowing costs as the Federal Reserve fights inflation could see the labor market momentum slowing significantly by mid-year. Nonfarm payrolls increased 223,000 last month, the Labor Department said in its closely watched employment report. Data for November was revised lower to show 256,000 jobs added instead of 263,000 as previously reported. When you look at any normal month, 220,000 new jobs are still a pretty hefty number. The Fed will still be on the path of hiking rates, but it will be at a lower pay or slower pace. It will not be at 75 basis points, it's likely to be 25 basis points, but they will still be raising rates. This is not an indication of an economy that is going into recession, at least through the lens of the job’s numbers.

Investment idea: range 131.60 - 132.50.

David Johnson
Analyst of «FreshForex» company
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