Some more good news from the US jobs market: JOLTs job opening are up to 5.624 million in June, better than expected and with a minor upwards revision to 5.514 million for May. The level of quits stands 2.9 million and the rate of quits is 2%.
The NFP report for June was upbeat with 292K jobs gained, according to the revised data. July also saw solid gains of 255K. Will this add to the odds of a rate hike? Perhaps, but only for December.
The US JOLTs jobs report was expected to tick up to 5.52 million in June after 5.50 million in May (before revisions). While the release is lagging in comparison to the Non-Farm Payrolls, it gains its market impact thanks to the Fed. Both current Chair Janet Yellen and her predecessor Ben Bernanke have highlighted the importance of this publication. It serves as a wider measure of the jobs market, one of the Fed’s mandates.
The quits rate is significant as well. When a person quits a job, the motivation is usually a higher paying one and a willingness to take a risk. A rising number of voluntary quits represents an improving economy.
The US dollar has been on the back foot before the publication. The notion that the Fed will remain dovish despite a better-looking economy supports risk-taking. Commodity currencies have gained nicely.
