US nonfarm payrolls exceed expectations
Nonfarm payrolls in the US increased by 311,000 in February.
Average hourly earnings in the country increased by 0.2 percent in February compared to the previous month. On an annual basis, the increase was 4.6 percent.
The expectation of economists participating in the Bloomberg survey was that the employment increase would be 225 thousand. The expectation for average hourly earnings is 0.3 percent monthly; The annual rate was 4.7 percent.
According to the data, the unemployment rate was 3.6 percent in February. The expectation for this data was recorded as 3.4 percent.
Following the release of the data, pricing in Fed swaps pointed out that the probability of a 50 basis point increase in March is 50 percent below.
Falcon messages came from Powell
The importance of employment data has increased this week after Fed Chairman Jerome Powell’s statements. Powell said that they would determine the size of the interest rate decision to be announced at the end of this month, after seeing the employment and inflation data to be announced, and stated that they were ready to increase the rate of increase in interest rates and to raise the interest rate to a higher level than previously thought if the data required.
ADP data, which is accepted as the leading indicator, increased above expectations. According to ADP data, private sector employment in the USA increased by 242 thousand in February. The median estimate of economists surveyed by Bloomberg was an increase of 200,000.
As other important employment data announced this week were strong, Fed interest rate pricing in the markets was also pulled up. Following the JOLTS job postings and ADP private sector employment figures, the weekly unemployment benefits data, which was announced last Thursday, increased by 211,000, exceeding the expectation of 195,000.
