Along with global markets, the cryptocurrency market has been under downward pressure due to hawkish statements from Federal Reserve officials and rising geopolitical risks that have caused an upward movement in oil prices. Attention had turned to three critical data points coming from the US. The eagerly awaited Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings data were recently released. According to the disclosed figures, the US employment data and wage increases in March exceeded expectations, signaling healthy growth for the US economy.
US Nonfarm Payrolls Increase by 303,000
The US Bureau of Labor Statistics released the critical Nonfarm Payrolls data. In March, nonfarm employment in the US increased by 303,000 people. Expectations were for an increase of 212,000 in nonfarm employment.
The announced Unemployment Rate indicates a decrease in unemployment in the country. Data shows that the unemployment rate in the US fell from 3.9% to 3.8% in March. The unemployment rate was expected to be 3.9%.
The Average Hourly Earnings, an important indicator of inflation, came in line with expectations. In March, average hourly earnings increased by 0.3% compared to the previous month. Expectations were for a 0.3% increase. On an annual basis, average hourly earnings increased by 4.1%. Expectations were for a 4.1% increase on an annual basis.
Probability of a Rate Cut in May Rises to 11.9%
The CME FedWatch Tool showed a 93.5% likelihood of the Fed keeping interest rates steady on May 1st before the Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings data were released. After the data release, the probability of a rate cut rose from 6.5% to 11.9%. Currently, the likelihood of the Fed cutting rates in May is 11.9%, while the probability of keeping them unchanged is 88.1%.
Following the release of the critical data, the US Dollar Index (DXY) started to move upwards. Before the data, the DXY was at 104.243 and rose to 104.578 after showing strength. Meanwhile, the largest cryptocurrency Bitcoin (BTC) saw a 0.57% decrease over the last 24 hours, trading at $66,218, while the largest altcoin Ethereum (ETH) experienced a 3.37% decrease during the same time frame, trading at $3,229.
