US April Nonfarm Payrolls Exceed Expectations, but Dollar Continues to Weaken Raising Concerns on Value Preservation
The United States recently announced its April nonfarm payroll report, showing an increase of 177,000 jobs, which, although below the revised 185,000 for March, significantly exceeds the market expectation of 133,000. The unemployment rate remained steady at 4.2%, with the labor participation rate slightly rising to 62.6%.
Financial expert Nguyen Mu Hua warned about a troubling trend described as 'serious divergence' in the economic data. While the better-than-expected nonfarm numbers suggest a postponement of interest rate cut expectations by the Federal Reserve, the dollar still continued to weaken.
Moreover, the ISM manufacturing index remains weak, with production indices plummeting to 44. Job data are a lagging indicator, while the purchasing managers' index is a leading indicator, indicating a disparity between the two. There is a growing concern about the value preservation of fixed income instruments.
