CIBC Research discusses its reaction to today's US jobs report for the month of June.
"The US labor market came roaring back in June, with 224K jobs being created, well above the consensus forecast. That was in line with our expectations and the encouraging readings on jobless claims, and was only slightly offset by -11K in revisions to the prior two months together. The unemployment rate ticked up but that was a reflection of the increase in the participation rate, which still has room to rise further ahead. Wages disappointed, with a 0.2% advance on the month a tick below expectations, but there was a positive revision to the prior month, leaving annual wage growth unchanged at 3.1%," CIBC notes.
"Overall, this supports our call that the Fed may not cut rates as markets expect this month, and should boost the USD and see yields rise today," CIBC adds.