February Non-farm payrolls beat expectations
Data released from the United States on Friday showed that non-farm payrolls unexpectedly rose last month.
The figures from the Labour Department reported that 678,000 jobs were added to the U.S. labour market in February.
This is almost 70% higher than the 400,000 jobs that markets had forecast and helped push the unemployment rate to 3.8% from 4.0%.
Despite the growth in jobs, the Federal Reserve will likely move forward with a rate hike of twenty-five basis points later this month.
XAUUSD rose to its highest level since September 2020 on the news.
Oil prices climb to highest since 2008
Crude was another commodity to climb to multi-year highs on Friday, as prices of the energy traded above $110 per barrel.
WTI crude rose to an intraday high of $116.57 in today’s session, which is its highest level since 2008, during the Global Financial Crisis.
|💡 Spiking oil, an indication of a coming recession?|
The last three U.S. recessions all came after a sharp increase in oil prices. Between July and October of 1990, crude shot up nearly 135%. The U.S. economy then entered a recession that lasted until 1991. Crude more than doubled between 1999 and 2000 before the economy fell into a recession in 2001. Oil also shot up more than 96% from its 2007 low into early 2008, just before the most recent U.S. recession.
Today’s jump in oil prices comes despite ongoing talks between Iran and the United States, which could see Iranian oil once again supplied to markets.
Prior to U.S. sanction on Iranian oil, the country was exporting around 2.4 million barrels per day.
As of writing this, crude oil prices were still trading over $116 per barrel.
EURUSD falls to two-year low
Friday’s volatility did not just impact commodity prices, but also currency rates, as EURUSD fell to its lowest rate in over 2-years.
This came as the ongoing war in Ukraine intensified, as Russia was accused of shelling Europe’s largest nuclear plant.
As a result of this the world’s most traded currency fell to an intraday low of $1.088, which is its lowest level since May 2020.
The move in the Euro also impacted global indices, with the DAX 30 falling by as much as 4.5% today.
In the United States, the S&P 500 was also lower, and was down 1.27% as of writing.
“The biggest risk is not taking a risk. In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”–Mark Zuckerberg