The US economy was strong in July, according to this week’s ISM jobs and services PMI data
The US economy added 528,000 jobs in July, much more than the 250,000 expected by economists, while June’s nonfarm payroll gain was revised up to 398,000 from 372,000. July’s gain saw core nonfarm payroll employment finally recover to its pre-Covid-19 pandemic level, 30 months later, and mark a 19the successive months of employment earnings. The unemployment rate also fell from 3.6% to 3.5%, a new post-pandemic low, although this was partly due to a drop in the participation rate.
The latest employment data, as well as the US ISM Services PMI data earlier this week unexpectedly rising in July, paint a picture of a US economy expanding at a healthy pace as beginning of the third quarter of 2022. Meanwhile, the pace of average hourly earnings growth accelerated to 0.5% MoM and 5.2% YoY from 0.4% and 5.1% in June.
All that said, analysts interpreted the data as strong support for a continued rapid pace of monetary tightening by the US Federal Reserve in the coming months. Money markets are tightening rapidly to imply a more than 70% chance of a 75bp rate hike at the next central bank meeting in September, marking a third consecutive move of this magnitude from around 34% last week. yesterday.
What to see next week
Inflation remains at the forefront of investors’ attention next week with the release of US consumer price index data for July on Wednesday. The headline CPI is forecast to increase at a rate of 0.2% month-on-month and 8.7% year-on-year in July, down from 1.1% and 9.1% respectively in June. Meanwhile, the core CPI is forecast to rise 0.5%m/m and 6.1%y/y vs June’s respective readings of 0.7% and 5.9%.
The drop in mainstream price pressures would be a welcome validation of peak inflation hopes and this has the potential to boost sentiment in the crypto markets. Elsewhere, Ethereum developers are set to roll out the Proof-of-Work to Proof-of-Stake “Merge” on the Goerli testnet next Thursday.
This is the last of the major Ethereum testnets to perform the merger before the planned mainnet merger in September. Success could boost ETH sentiment. Elsewhere, Monero is scheduled to update its network next Saturday.
Bankrupt Crypto Lender Voyager Digital to Reopen Cash Withdrawals Next Thursday
Cryptocurrency brokerage/lending platform Voyager Digital, which is currently in bankruptcy proceedings, announced in a blog post on Friday that it plans to reopen cash withdrawals next Thursday (Aug. 11), as part of plans to return $270 million in cash to customers.
Deposit return requests could take 5 to 10 days to process, Voyager said. The platform first stopped withdrawals in early July citing difficult market conditions.
libdogecoin updates enabling light integration of Dogecoin on other platforms go live
According to a tweet from Dogecoin lead developer Michi Lumin on Friday, the Dogecoin Foundation has released the libdogecoin update that enables “lightweight” integration of Dogecoin on several other platforms.
So after several months, many sleepless nights, and a false launch, #libdogecoin v0.1 is now ready to play here: https://t.co/hcYXnt8UJX
Huge props to the rest of our little liberation team, @KBluezr and Jackie (github: jaxlotl), for the incredible effort.
More to come.
— Michi Lumin (@michilumin) August 5, 2022
“Libdogecoin is one of 8 core projects that will make Doge the default money,” explained one Twitter user. “This (update) allows any developer to build products securely on the blockchain, in their own language, and without first mastering the details of the blockchain… (opens up) a world of potential use cases and markets.” “, they added.
Libdogecoin is one of the top 8 projects that will generate the default money. 😉
It allows any developer to build products securely on the blockchain, in their own language, and without first mastering the details of the blockchain.
This opens up a world of possible use cases and markets.
— Ai (@aikude) August 5, 2022