US Labor Market Adds 236K Jobs in March
BY Janne Muta|April 7, 2023
According to the March 2023 NFP report, the US job growth was in line with expectations. The economy added 236K new jobs. The number is substantially lower than the February NFP figure at 311K. The unemployment rate came in a notch lower than expected, 3.5% vs. 3.6% expected. Average hourly earnings were also confirmed slightly lower than expected (4.2% y/y vs. 4.3%).
In low-volume holiday trading, the US Treasury yields, the dollar, USDJPY, and DJ are all reacting positively. We shouldn’t read much into these reactions though. What really matters is how the market trades next week. All in all this report could make a rate hike in May possible, but the Fed might not have enough additional data to support their decision by then. Therefore, they probably will stick to what they’ve signaled so far.
Please, consider whether you should close positions to avoid the weekend risk as the markets react to the NFP release in the start of next week’s trading and could gap up or down. You can always reopen the positions on then. Alternatively, if your positions are well in profit (there’s a good cushion in the account) you can add funds to your account to provide enough margin to cover potential adverse price moves.
Chief Market Analyst
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Janne Muta holds an M.Sc in finance and has over 20 years experience in analysing and trading the financial markets.
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