A disappointing US jobs report on all fronts: only 138K jobs gained and wages are up 0.2% as expected but with a downwards revision. Year over year, salaries are stuck at 2.5%. The unemployment rate is down to 4.3% but the participation rate also falls to 62.7%. Revisions are negative but so is the real unemployment rate.
All in all, the big miss in jobs is compounded by static wages at 2.5%. The US is falling sharply across the board on this terrible jobs report.
May 2017 NFP Data (updated)
Non-Farm Payrolls: 138K (exp. +186K last 211K before revisions)
Average Hourly Earnings 0.2% m/m, 2.5% y/y (exp. +0.2% m/m, 2.6% y/y, last month 0.3% m/m, 2.5% y/y)
Revisions: -66K (-6K last time).
Participation Rate: only 62.7% (62.9% last month )
Unemployment Rate: 4.3% (exp.4.4%, last month 4.4%)
Private Sector: only 147K (ADP showed 253K).
Real Unemployment Rate (U-6): 8.6% (previous: 8.6%).
Employment to population ratio: only 60% (previous: 60.2%)
Average workweek: 34.4 (last month: 34.2).
NFP Currency Reaction
EUR/USD traded around 1.1210, sticking to the range as tension mounts towards the ECB and the mood is positive. After the event, EUR/USD reaches new 7-month highs.
GBP/USD traded around1.2855. Every election poll matters, and it is weighing on the pound. Cable is now recovering, reaching 1.2880.
USD/JPY was trading around 111.50, stable and waiting for the NFP. The pair slips under 111.
USD/CAD was around 1.3525. Despite strong Canadian GDP, oil prices are falling and have the upper hand. The pair is challenging 1.35 after the publication.
AUD/USD is around 0.7390, still suffering from Chinese data. AUD/UDS recovers above 0.74.
All in all, the dollar is weaker.
More: FOMC reactions – banks see June hike – are they correct?
NFP Background
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