(BFM Stock Exchange) – The dollar plunges against the Euro after a monthly report on American employment much less good than expected. On the bond market side, the yields fell. These figures should lead the Fed to reduce its rates at its next September meeting.

Main meeting of the day in terms of economic indicators, the last monthly employment report turned out to (well) less good than expected.

The American economy created fewer positions than anticipated in August. According to the monthly report of the Labor Department, only 22,000 jobs were created last month, more than 50,000 positions less than what the consensus awaited, that is to say 75,000 job creations.

The unemployment rate increased online with expectations at 4.3%, after 4.2% in July. Average salary growth is 0.3% in August, as expected by consensus and as in July.

This very bad report of American employment comes even more to support speculations on the fact that the American Federal Reserve (Fed) will lower its rates. According to the CME Fed Watch tool, the market grants a probability of 97.8% to a relaxation of 0.25 percentage points and 2.2% … for a drop of 0.5 percentage points.

“Difficult to anticipate the reaction of the markets on this report because a bad report would certainly validate a drop in rate in September, but would strengthen the feeling of a slowdown in the American economy,” said Alexandre Baradez, responsible for market analysis at IG France, in a note published before statistics.

“The employment report published today does not really matter […]. The Fed will drop 25 base points at its September meeting. A favorable report should not dissuade it from doing so, given the general downward trend of employment data, “said Michael Brown on Friday morning at Peppperstone.

The dollar and rates drop

The dollar fell against the euro after this report. The single currency jumped 0.64% to 1.1732 dollars while it was slightly increasing in front of the greenback before this publication.

On the bond market side, the yields fell. The rate of American 10 years contracts 4.075%, then 4.15% before statistics when the 30th, dropped to 4.80% against 4.88% around 2:00 p.m.

Oil also suddenly won after these figures. The November contract on northern sea drops from 1.9% to $ 65.72 a barrel while that of October on the WTI listed in New York folds from $ 62.19 to a barrel.

On its guards at midday, the Parisian index took over a few colors and grabbed 0.20% to 7,714.01 points around 3:00 p.m.

At Wall Street, the pre -opening indicators suggest an increase of 0.4% for the S&P 500 and 0.80% for the NASDAQ. Only the Dow Jones is expected stable in the first exchanges.

Broadcom leaps by 15% in pre -opening and should still reach new historical highs after a publication and prospects above expectations, supported by significant demand for its AI chips.