The U.S. August employment report showed an unemployment rate of 4.1% and a 162,000 month-on-month increase in nonfarm payrolls. Average hourly earnings rose 0.3% month on month and 3.1% year on year, while the labor force participation rate increased to 61.6%. The dollar rebounded in response.
The U.S. August employment report released by the U.S. Department of Labor showed that the unemployment rate held at 4.1%, unchanged from the previous month and in line with expectations, while nonfarm payrolls increased sharply by 162,000 month on month. July was revised upward to an increase of 21,000, while June was also revised upward by 31,000, bringing the total revisions for the two months to an increase of 55,000.
Average hourly earnings for the month rose 0.3% month on month and 3.1% year on year. The month-on-month increase accelerated, while the year-on-year increase slowed. The labor force participation rate was 61.6%, its highest level since May.
The market accelerated its dollar buying in response to the positive surprise in the U.S. employment report. USD/JPY rose from the ¥156.00 range to near ¥156.75, while Western currencies strengthened against the yen.
Meanwhile, movements in GBP/USD and EUR/USD were limited. EUR/USD fell from $1.1627 to $1.1585, while GBP/USD declined from $1.3535 to $1.3483.