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The US Non-Farm Payrolls missed expectations with only 134K but other figures were more nuanced. What does it mean?

Here is their view, courtesy of eFXdata:

CIBC Research discusses the reaction to today’s US jobs report for the month of September.

“Expectations had been raised by positive ADP and ISM surveys during the week, and in that context, the  134K gain in payrolls during September  initially looked like a disappointment. However,  cumulative upward revisions totaling 87K made up for the shortfall versus the consensus forecast, and the rest of the detail within the report looked solid as well.

The unemployment rate fell two ticks to 3.7% (consensus 3.8%), despite an unchanged participation rate, thanks to a big gain in employment on the household survey. Meanwhile, wage growth, which picked up in the prior month, came in line with expectations with hourly earnings rising 0.3% on the month for an annual rate of 2.8%.

As such, today’s results are still consistent with a strong US economy and gradually accelerating inflationary pressures,” CIBC argues.

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