Finance

Finance

Statistic on US labor market to cheapen USD, make Fed to avoid rate hike - FORECAST

Statistic on US labor market to cheapen USD, make Fed to avoid rate hike - <span style="color: red;">FORECAST

03 June 2016 16:51 (UTC +04:00)

Interestingly, the experts forecasted 164,000 jobs would be created in May. So, the rate of job creation has fallen to its lowest since September 2010.

According to predictions by APA-Economics, this will cause USD to fall. The process has already started. So, EUR/USD rate made Â 1.1265 as at the time of theÂ preparation of this article, while it was 1.158 when the statistics was announced.

Change of the situation in this direction may affect the decision of the US Federal Reserves (Fed) to be passed on June meeting. So, the economic growth rate is not so as Fed forecasted. According to statistics announced by the United States Department of Labor (DOL), share of economically active population dropped from 62.8% to 62.6%. As it seems, supposition of USD hike by regulator fell to 50/50. Â

In addition, Fed will supposedly analyze at June meeting the referendum which is being held on Thursday, 23 June to decide whether Britain should leave or remain in the European Union the Britainâ€™s leave the EU. If Britain leaves EU, this may result in collapse in global economy. In this case, itâ€™s not believable that the Fed will raise USD. Â