Release of data by the level of employment in the United States did not bring any surprises for main participants and experts of the financial market. Their previous forecasts from the first increase of interest rates by the Fed are fully justified. Chris Rupki, chief economist at Bank of Tokyo-Mitsubishi, points out in his Friday report that the reducing unemployment has reached the lowest value for the last seven years, thus such data confirm the increase of rates by the Central Bank summit on September 16-17.
Senior Economist of Jefferies Group LLC New York Ward McCarthy fundamentally disagree with the opinion of his colleague. According to him, Friday's figures underline that the growth of wages is not high enough for that we should expect the rate hike. "Despite the fact that the market in recent years is in stable condition, one should not forget about inflation," - says McCarthy.
Tension on the markets on Friday reached high intensity, as the primary response to the output data. For example of high-standard ten-year government bonds we can imagine the excitement of the market: initially treasures rose, then fell, and so several times during the trade after publication of data. The futures market had a similar situation: first, the probability of rate hike was reduced by 26% by traders, then increased by 10%, in the end value was fixed at 30%. The number of employed in non-agricultural sector amounted to 173k in August. The unemployment rate reached its lowest level since 2008 and amounted to 5.1%. The average workweek grew along with average hourly earnings, which increased by 0.3% in August and 2.2% in 2014.