CIBC Research discusses the reaction to today's US jobs report for the month of May.
"After a couple of cooler months, job and wage growth heated up again in May. The 223K gain in payrolls was above the 190K consensus and came with cumulative upwards revisions of 15K to the prior two months.
Following an only modest 0.1% rise in the prior month, wages were up 0.3% in May to take the annual rate up to 2.7%. While that's still within the range it has trended in since mid-2016 and not high enough to warrant a faster pace of rate hikes, it is slightly above the consensus and as a result will likely support the US$ and weigh on fixed income today, seeing yields rise slightly.
On the household survey, the unemployment rate ticked down further to 3.8%, driven both by a slight fall in participation but also a rise in employment on that survey as well," CIBC argues.