CIBC Research discusses the reaction to today's US jobs report for the month of April.
"After the highs and lows of the prior two months, payroll growth settled to a more trend-like pace in April. The 164K gain in jobs for the month was a little below the consensus, but adding cumulative revisions of 30K to the figure puts us broadly in line with expectations. The unemployment rate falling to 3.9%, from 4.1%, was partly driven by a tick lower in the participation rate.
The main surprise was on the wages side, which continue to show little in the way of acceleration despite how low the jobless rate is. The 0.1% gain on the month, and 2.6% annual pace, were both a tick below the street's forecast and there was a slight downward revision to the prior month as well....
Slightly negative for the US$ and positive for fixed income," CIBC argues.