Dollar is the market king again. Overview for 09.08.2021

On Monday, euro/dollar is balanced but might decline again. The current quotation is 1.1760.

The Friday block of US statistics on the labor market fully lived up to all expectations. The unemployment rate dropped to 5.4% from 5.9% previously against the 5.7% forecast. This is a brilliant result. The economy kept creating new workplaces as efficiently as before: the NFP grew by 943 thousand against 870 thousand forecast. By the way, the June report was revised for better, and this is also good news.

Average hourly wage in July grew by 0.4% m/m, growing at the same speed as in June.

Statistics are extremely important for investors, especially after the Fed announced that better working conditions are essential for further toughening of credit and monetary conditions.

The strong labor market report noticeably increased the probability that stimulation might start subsiding this year already. Hence, in 2022, we might witness a row of higher interest rates.

Now let us wait for inflation data due this week.