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The level of employment in the United States improved and there will be an impact on Argentine assets

The level of employment in the United States improved and there will be an impact on Argentine assets

The US labor market created 272,000 jobs in May. The Federal Reserve is expected to keep its interest rate unchanged.

The United States labor market created 272,000 jobs in May, which will allow the Federal Reserve to choose to keep the interest rate unchanged in the face of a good performing economy, and consequently will affect assets in emerging markets such as Argentina.

The data was expected by the financial market and when it was disseminated, the effects began to be seen with a decline in Argentine bonds listed on Wall Street.

However, the creation of jobs could not prevent the unemployment rate from rising from 3.9% to 4%.

The labor market has far exceeded expectations in the last two years, boosting the economy in general, according to analysts.

Therefore, The Federal Reserve is expected to keep its interest rate unchanged in the current range of 5.25%-5.50%, where it has remained since last July.

By not lowering the interest rate (which is not necessary in an economy that creates jobs), investors prefer to keep their investments in safer assets and avoid the risk of buying assets from countries like Argentina.

Consequently, another difficult day is expected for Argentine bonds and stocks, with which the Country Risk could exceed 1600 points.

Source: Ambito

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