Non-farm Payrolls (April)

The US jobs report delivered strong headline numbers but saw dollar selling in the aftermath as each data set was undermined by a negative tone.
Non-Farm Payrolls regained its ‘200k’ mantle with a strong 211k print, yet was made less impressive by a 19k downward revision to last month’s already-poor figure. Similarly, earnings growth for the same period was lowered by 0.10% as this month printed on-target at 0.3% for average earnings. Completing the pattern, unemployment dipped to 4.4% – almost a 10-year low – but behind-the-scene shifts in participation measures also undermine the impact of that headline. Market predictions for a June rate hike sat at 70% ahead of the data and today’s report won’t worry or excite fixed income traders who will see little justification for taking new positions.

Richard de Meo’s comments on today’s Non-farm Payrolls print.


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