CIBC Research discusses its reaction to today's US jobs report for the month of October.
"Hiring heated back up after the hurricane-impacted prior month, and wage inflation pushed over 3% despite only a trend-like monthly advance. The 250K gain in jobs was 50K above the consensus, and came after a downwardly revised 118K advance in the prior month which was dampened by weather disruptions.
Often following such a disruption, we don’t just see an overshoot in job growth relative to the underlying trend, but also an undershoot of wages as lower-paid temporary workers re-enter the count. That didn’t happen to quite the extent that we were anticipating this October, as the 0.2% monthly increase (while slightly below the recent trend) matched the consensus forecast and took the annual rate up above 3% (to 3.1%)," CIBC notes.
"Overall, a higher than expected gain in jobs and annual wage increase above 3% should be positive for the US$ and negative for fixed income," CIBC argues.