The details of today's U.S. jobs report indicate less growth and inflationary pressures than initial headlines suggested, diminishing the yield support for the dollar and leaving USD/JPY in a tough spot. With risks such as U.S. CPI data and U.S.-China trade talks next week, USD/JPY is eyeing Wednesday's pivotal 111 low nL1N22E0OA. Given that there was little sign of upward inflation or consumer income pressure in the jobs report, there's no need for U.S rates and the dollar to maintain gains made after Powell's presser Wednesday.
The jobless rate fell, but so did the participation rate.
Average hourly earnings crept up, but less than expected.
The annual rise in average weekly earnings was the smallest in 15 months at 2.9 percent versus 3.2 percent previously.
As for the 263k NFP rise, it was almost all from three service sector groups and likely boosted by temporary hiring for the census.
Manufacturing jobs only increased 4k after coming in flat in March.