Before the opening of the American trading session, the single European currency was declining, losing almost all of its gains from the previous day. But as soon as it became known that the number of open vacancies in the US fell to 8.827 million, steeper than the projected 9.570 million, the single European currency immediately shot up. This is a rather strange reaction. Of course, one can conclude from these data that the US economy created not enough jobs which could lead to rising unemployment.
However, on the grounds of the number of open vacancies, the rate of population growth, and the rate of hiring employees, this reading will be enough for the US for four years ahead. In other words, American business, in principle, may not invest in the creation of new jobs for a few coming years and no catastrophe will occur in the labor market. This is just one of the possible explanations for the change in the number of open vacancies. To sum up, it is quite difficult to interpret JOLTs job openings data, because analysts often suggest diametrically opposite explanations. For this reason, market participants attach no importance to the data on US vacancies.
Following the report, the single European currency retained its oversold status. The market is ready to grasp at any straw in order to finally carry out a more or less sensible correction. Meanwhile, the countdown is ticking towards the event of crucial importance. On Friday, the US Department of Labor will unveil the nonfarm payrolls for August. No wonder, the market is in the wait-and-see mood, refraining from any large risky bets ahead of this high-impact news. Today traders will get to know the employment report by the ADP payroll processor. According to ADP estimates, the US private sector could have added 210K jobs in August. The predicted number is quite small by American standards. Therefore, the unofficial data will be interpreted by the market solely as a warning about the upcoming rise in unemployment.
