top of page

Weak Payroll Growth and Mixed Unemployment Data Drive Fed Rate Cut Speculation

Critical non-farm payroll data has been released. While payroll growth of 114K in July was expected to rebound to 165K in August, the figure revealed an increase of 142 K. The increase in payroll figures was in line with the growth seen in recent months but significantly below the previous 12-month average of 202K.


On the other hand, the unemployment rate, which had risen to 4.3% in the previous month—the highest since November 2021—fell to 4.2%, in line with market expectations. The U.S. Bureau of Labor Statistics report also showed that the number of temporary layoffs in August decreased by 190K, while the number of permanent job losses remained unchanged.



A notable aspect of the report is the downward revision of June's payroll growth by 61K, from 179K to 118K, and the downward revision of July's 114K increase by 25K, bringing it down to 89K.


Consequently, the figures indicate that the U.S. labor market had started to cool earlier than anticipated. Expectations for an aggressive 50 basis point rate cut in September have risen to 53%, and the USD weakened.


However, when considered alongside the drop in the unemployment rate, Fed officials are likely to interpret this report as a sign of labor market normalization. Therefore, it is difficult to say that this report will convince the Fed to implement a 50 basis point rate cut. Officials' speeches will be closely monitored to understand how the Fed views this report.

DUHANI

Register Address​:

​

43 Great George Street, 

St Great George, 

Roseau, Dominica

​​​​​​​

Email:

​

support@duhanicapital.com

​

Physical Address​:

​

Rruga Pavaresia, 

Nd:129 H.5, Ap/27, 

Durres Albania

Telephone:


+355 524 20144​

Disclaimer: This website is owned and operated by Duhani Capital Ltd., prepared in compliance with applicable regulations. It is not intended for distribution, use, or account opening by any individual or entity in jurisdictions where such actions are restricted or prohibited by law, regulation, or internal policies.

​

Risk Warning: Trading Foreign Exchange (‘Forex’) and Contracts for Difference (‘CFDs’) involves a high level of risk due to leverage, which can amplify both gains and losses. These products may not be suitable for all investors, as you may lose your entire invested capital. It is essential to trade only with capital you are prepared to lose. Before engaging in trading, ensure that you fully understand the risks involved, consider your investment objectives, and seek independent advice if necessary. Please note that Duhani Capital Ltd. operates on an execution-only basis and does not provide financial advice or recommendations.

 

Restricted Jurisdictions: This website and its services are not intended for individuals residing in or legal entities based in the following jurisdictions, including but not limited to: USA, Malaysia, Cuba, North Korea, Lebanon, Libya, Mali, Myanmar (Burma), Nicaragua, Crimea region, Sevastopol, Somalia, Sudan, South Sudan, Syria, Venezuela, Yemen, Zimbabwe, Japan, and Iran.

 

Company and Licensing: Duhani Capital Ltd. is incorporated in Dominica and operates in partnership with Financial Master Management Ltd. for trading and dealing in Forex & CFDs. Financial Master Management Ltd. holds the exclusive Master Financial Dealer License (License No: 2023/C0010-0004).

​

FinCEN Registration: Duhani Capital Ltd. is registered as a Money Services Business (MSB) under the Financial Crimes Enforcement Network (FinCEN), Registration Number: 31000280238735.

Copyright © 2024 Duhani Capital Ltd.

  • Facebook
  • Instagram
  • X
  • LinkedIn
bottom of page