7/5, 4:00 PM (Source: TeleTrader)
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Oil bounces as traders bet on US economic strength

Market participants turned to oil futures on Friday, erasing the session's losses and lifting prices on the notion that the United States economy isn't facing headwinds as strong as officials from the Federal Reserve have been warning about. The Department of Labor said employers added a whopping 224,000 jobs in June. The jump in crude defied the dollar's surge, as appreciation normally makes the energy commodity more expensive for holders of other currencies.

The jobless rate advanced by 0.1 percentage points to 3.7% but underlying data showed it was due to strong additions to the labor force. The so-called U-6 indicator, which also includes the underemployed and the marginally attached workers, grew to 7.2% from 7.1% and the participation rate strengthened to 62.9% from 62.8%. Investors will be looking at the central bank for signs of a shift in the stance as rate-setters have earlier hinted at a strong drop in borrowing costs.

West Texas Intermediate for settlement next month surged 1.68% to $57.53 per barrel at 3:49 pm CET. Brent for delivery in September was 1.58% higher at $64.3 for one barrel.

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