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According to analysts at TD Securities, US June employment report was mixed but not as bad as the knee-jerk market reaction might suggest, with another solid payroll print, a higher unemployment rate as workers flooded back into the labor force, and modest wage growth that held steady at 2.7%.

Key Quotes

“Nothing in today’s report should change the Fed’s policy outlook: the June FOMC minutes highlighted an expectation that the labor market may be able to tighten further via higher participation as wage growth slowly improves, allowing the Fed to remain on a continued, gradual pace of rate hikes.”

“We think markets may take this opportunity to dial back on USD longs.”