- In May, the US economy added 339,000 new jobs, according to a report released by the Bureau of Labor Statistics (BLS) on Friday morning.
- The unemployment rate in April was 3.7%, which is higher than the expected 3.5%.
- Before the data was released, the price of Bitcoin, which was $27,136, fell 0.55% to $26,987.
What is the current situation in the markets for Bitcoin, Gold, and DXY following the release of US labor data?
US Labor Data Released
In May, the US economy added 339,000 new jobs, according to a report released by the Bureau of Labor Statistics (BLS) on Friday morning. This is ahead of the upwardly revised 294,000 jobs in April and sharply above economists’ estimate of 195,000. Employment gains in April were initially reported at 253,000.
The unemployment rate in April was 3.7%, which is higher than the expected 3.5%.
The unemployment rate in the US was announced as 3.7%. (Expectation was 3.5%)
— CO NEWS (@coinotag) June 2, 2023
The US Federal Reserve has entered a historic interest rate hike process to combat high inflation since the beginning of 2022. However, sharply rising interest rates have had little effect on the strong labor market, which is one of the reasons why the central bank continues to tighten its monetary policy.
The Federal Open Market Committee (FOMC) of the Fed will hold its next meeting on June 13-14, and markets largely expect the central bank to raise interest rates once again. This is a sharp change from just a month ago when investors were almost certain that the Fed would take a break in its interest rate hike cycle.
When more detailed reports were checked, it was seen that hourly wages in May increased by 0.3% from April and were in line with expectations of 0.4%. On an annual basis, hourly wages increased by 4.3%, slightly below April’s 4.4% and in line with expectations.
Bitcoin, Gold, and DXY After the Data Release
Following the release of US unemployment and employment data, there was movement in the markets. Before the data was released, the price of Bitcoin was $27,136, and it fell 0.55% to $26,987 after the data was released. The price has since managed to stay above $27,100 with a slight recovery.
Before the data, ONS Gold was trading at $1,978. After the data was released, it experienced a 0.51% drop to $1,968. Currently, the Gold price is trading at $1,972 with a slight recovery.
The situation is different for the DXY, or the dollar index. Before the data was released, the DXY was at 103.514, and after the data was released, it rose 0.23% to 103.755. At the time of writing, the DXY is at 103.548.
