CIBC Research discusses its reaction to today's US jobs report for the month of June.
"Hiring remained too hot for the Fed’s comfort in the US in June. The 372K jobs created were above the consensus of 265K, even when accounting for the -74K revision to the prior two-month tally, with hiring being tilted towards private services. In contrast, the household survey showed a loss of 315K jobs, and combined with a slight drop in the participation rate, the unemployment rate remained steady at 3.6%, as expected. Average wages grew by 0.3%, in line with expectations, but an upward revision to the prior month left the annual pace of growth a tick above expectations at 5.1%," CIBC notes.
"Overall, the continued strong hiring in the payrolls survey supports a likely 75bp hike by the Fed later this month," CIBC adds.