The economy is therefore healthy enough to keep the housing market from collapsing and justifies the Federal Reserve's priorities of putting inflation ahead of growth. Expect interest rates to remain unchanged for the remainder of the year - this report is hawkish from both a growth and inflation standpoint. The strong number will help to pacify concerns about a slower second half and keep carry trades in play. USD/JPY, which is very sensitive to interest rates will benefit the most. With the ECB postponing a rate hike until the fourth quarter, this should also mark a near term top in the EUR/USD.
Details of the Report:
Change in Non-Farm
Payrolls:
132k Actual, 190k Previous (Revised from 157K)
Unemployment
Rate:
4.5% Actual, 4.5% Previous
Change in Manufacturing
Payrolls: -18k Actual, -7k Previous (Revised from
-19K)
Average Hourly
Earnings: 0.3%
Actual, 0.4% Previous (Revised from 0.3%) >> Annualized rate
was 3.9% prior was revised from 3.8% to 4.0%
Average Weekly
Hours:
33.9 Actual, 33.8 Previous (Revised from
33.9)
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