Breaking: U.S. Jobs Report Comes In Stronger Than Expected Despite U.S.-Iran War
Highlights
- Nonfarm payrolls rose to 115,000, above estimates of 65,000.
- The unemployment rate came in at 4.3%, in line with expectations.
- Bitcoin slipped following the release data release.
The U.S. jobs report has come in stronger than expectations, signaling that the labor market remains strong despite the pressures from the U.S.-Iran war. Bitcoin slightly slipped on the back of the data release, which makes a case for the Fed to hold rates steady for now.
U.S. Jobs Report Comes In Strong With NFP Beating Estimates
Bureau of Labor Statistics data shows that nonfarm payrolls rose by 115,000, beating estimates of 65,000. This marks the second consecutive month in which the U.S. has added over 100,000 jobs, with March nonfarm payrolls increasing by 178,000.
Meanwhile, the unemployment rate remained unchanged at 4.3% in April, in line with expectations. This comes despite the inflationary pressures from the U.S.-Iran war, with the U.S. jobs report signaling that the labor market remains healthy.
Bitcoin slipped from a high of around $80,200 following the release of the U.S. jobs report. The BTC price is currently trading at around $80,000, down almost 2% on the day, according to TradingView data.
The report is typically bearish for Bitcoin and the broader crypto market as it strengthens the case for the Fed to keep holding rates steady, given that the Iran war appears to be having more impact on inflation than the labor market. There is also the possibility that the Fed could hike rates as inflation concerns mount.
Meanwhile, in addition to the U.S. jobs report, Bitcoin is also facing significant volatility today due to the crypto options expiry. As CoinGape reported, $2 billion in Bitcoin and Ethereum options expired today, with BTC’s max pain price at around $79,500.
Fed Not Expected To Lower Rates This Year
Crypto traders continue to bet against the Fed lowering rates this year amid the release of the U.S. jobs report. Polymarket data show that the odds of zero Fed rate cuts this year have climbed to 56% this week, while the odds of at least one cut have fallen further to 19%.
At last week’s April FOMC meeting, the Fed again signaled it will continue to adopt a wait-and-see approach amid uncertainty about the impact of the U.S.-Iran war. Furthermore, the Fed shifted its tone from “somewhat elevated” inflation to “elevated” inflation.
The imminent emergence of Kevin Warsh as the next Fed chair is unlikely to affect the trajectory of these rate cuts, especially with Fed Chair Jerome Powell set to remain on the board. At the same time, Fed Presidents Lorie Logan, Beth Hammack, and Neel Kashkari have signaled that they are more inclined to support a rate hike rather than a cut at the moment.
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