FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that the Nonfarm Payrolls reported was stronger than expected.
Key Quotes:
“Although it will not boost the chances of a Fed rate hike later this month, a September lift-off still seems like the most likely scenario.”
“The US economy created 280k jobs in May after a revised 221k increase in April. The April figure is 2k lower than the initial estimate, but the March job growth was revised up by 30k to 119k. March is still an outlier.”
“Average hourly earnings rose 0.3%, a little more than expected and sufficient to lift the year-over-year rate to 2.3%, which matches the high from August 2013. That matches the high from August 2009.”
“If there was anything disappointing in the report it was the tick up in the unemployment rate to 5.5% from 5.4%. This matches the 0.1% increase in the participation rate to 62.9%.”
“The report should quash talk in some quarters that the US was going to slip back into recession after the contraction in Q1.”
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