U.S. nonfarm payrolls likely to have risen strongly in August, says Barclays

The U.S. August employment report is set to be released next week. The nonfarm payrolls are expected to have increased by 200k in August, while private sector payrolls are expected to rise by 190k, noted Barclays in a research report.

Factors that highlight these expectations are the initial and continuing claims that indicate towards weak rates of separation in the labor market, and the rebound in the employment diffusion index in the past two months, which shows employment growth has been more widespread throughout industries. The labor force participation rate has moved higher by two-lengths in recent months to 62.9 percent and has yet to move above 63 percent since March 2014.

“As a result, we look for solid employment and lack of further near-term upward momentum in participation to lead to a one-tenth decline in the unemployment rate to 4.2 percent”, stated Barclays.

Meanwhile, average hourly earnings are expected to rise by 0.3 percent sequentially and 2.7 percent year-on-year. Average weekly hours are expected to have stayed the same at 34.5.

At 22:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 13.9156. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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