March employment figures were disappointing across the board. Over the past three months, the US economy created 197k jobs per month on average, well above the breakeven pace of 80-90k.
Moreover, jobless claims dropped sharply in the weeks following the March survey period, pointing to a strong April jobs report.
“Despite today’s disappointment, the report does not change our views on the labor market. By the June FOMC meeting, the unemployment rate likely to be around 5.2%-5.3%, only marginally higher than the Fed’s new estimate of NAIRU. We believe that the biggest hurdle for a June lift-off lies on the demand side. Based on our forecast for a spring rebound, we continue to view the June meeting as a strong contender for a lift-off.” – Societe Generale said in a report on Friday
The material has been provided by InstaForex Company – www.instaforex.com