The US economy gained 178K jobs but wages slipped by 0.1%, a mixed bag all-around. Here is a quick reaction from CIBC:
Here is their view, courtesy of eFXnews:
Today’s employment numbers were a bit of a mixed bag, but they were still good enough to keep the Fed on track to hike later this month.
Non-farm payrolls showed an increase of 178k, in line with consensus, with little revisions to the past two-months’ pace of hiring. Moreover, the unemployment rate fell three ticks to 4.6%, but some of that was due to a fall in labour force participation. Wages were less upbeat, with hourly earnings falling 0.1% on the month. That leaves the annual rate back down at 2.5%, from 2.8%. The uneven pace of growth reinforces our expectation that the Fed will still be taking a gradual approach to rate hikes in 2017.
Given the softness in wages, today’s release should be somewhat bullish for longer-term treasuries and negative for the dollar.
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