US Unemployment Data to be Released Today: How Could Bitcoin be Affected?

• The US labor market data for May will be announced today, June 2nd, Friday.
• If the data is announced as expected, it will show that the US labor market continues to progress nicely.
• Fed policymaker Philip Jefferson expressed a preference for a pause in the interest rate hike cycle at this month’s Fed meeting.

The US labor market data for May will be announced today, June 2nd, Friday. According to various economist surveys, it is expected that the labor market will create 193,000 new jobs in May.

US Unemployment Data to be Announced Today

The US labor market data for May will be announced today, June 2nd, Friday. These data, closely examined by Federal Reserve policymakers, may cause volatility in the Bitcoin market depending on how and to what extent they affect the expectations of interest rate increases by the US central bank.

According to various economist surveys, it is expected that the labor market will create 193,000 new jobs in May, which means a slight slowdown compared to the 253,000 jobs added in April.

Meanwhile, it is expected that the unemployment rate will rise from the historic lows of 3.4% to 3.5% and that the monthly earnings growth rate will moderately decrease from 0.5% to 0.3%.

If the data is announced as expected, it will show that the US labor market continues to progress nicely and will contradict the idea that the US is entering a recession.

This situation may affect cryptocurrencies such as Bitcoin and put pressure on prices if it reshapes Fed’s expectations for tightening. However, recent data shows that this may not be the case even if the Friday job report exceeds expectations.

Fed May Pause Interest Rates

Philip Jefferson, a Fed policymaker and nominee for Vice Chairman, expressed a preference for a pause in the interest rate hike cycle at this month’s Fed meeting on Wednesday.

Jefferson said, “Skipping a rate hike at a future meeting would allow the committee to see more data before deciding on the degree of additional policy tightening.” His words reflected the thoughts conveyed by Fed Chairman Jerome Powell in a speech last month.

Powell noted the need to be more cautious due to his desire to observe the delayed effects of the past 15 months of interest rate hikes and concerns about tighter credit conditions following the mini “banking crisis” in March.

According to CME’s Fed Watch Tool, US interest rate futures markets imply a 79% chance of interest rates remaining stable this month, despite some Fed policymakers preferring to continue tightening.

After the latest information from important Fed policymakers such as Jefferson and Powell, the unemployment report may not change these expectations too much.