June NFP: Something For FOMC Hawks And Doves Alike; No Change In Expectations – CIBC

The US enjoyed a gain of 222K jobs[1] but wages remained stuck at 2.5% once again. What’s next?

Here is their view, courtesy of eFXnews:

CIBC Research comments on today’s US jobs report for the month of June:

“US payrolls showed a significant rebound in employment, but still little progress in terms of wage inflation. The 222K gain in payrolls compared to a consensus forecast of 178K and was accompanied by a cumulative upward revision of 47K to the prior two months. While the unemployment rate ticked up to 4.4%, that was due to a rise in labour force participation.

However, even with the return to strong employment gains following a few disappointments, wages inflation remains fairly muted. Average earnings rose 0.2% on the month (consensus 0.3%) and a downward revision to the prior figure meant that the year-over-year rate of inflation, at 2.5%, was also a little below expectations.

So there’s something in this report for hawks and doves alike on the FOMC, and as such it shouldn’t change expectations that the Fed will take a pause from rate hikes in September to start the balance sheet unwind, before hiking again later in the year,” CIBC argues.

For lots more FX trades from major banks, sign up to eFXplus[2]

By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs[3]

from Forex Crunch http://feedproxy.google.com/~r/ForexCrunch/~3/TQJgkoqwVyo/

from Online Forex Trading Resource
View thesource article here

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s