CIBC Research discusses its reaction to today's US jobs report for the month of August.
"American employers accelerated hiring in August, although downward revisions took some of the shine off of today's report. Payrolls rose by 201K, slightly above expectations for a 190K advance but a 50K downward revision to the prior two months brings that below consensus. The unemployment rate held steady at 3.9%, contrary to expectations for a one tick fall, despite a fall in participation. The standout figure was the 0.4% advance in average hourly earnings which takes the annual rate up to 2.9%, with both readings exceeding expectations by two ticks.
That justifies another rate hike this month and suggests that underlying inflation may be picking up slightly.
However, we have seen wage growth pick up before, only to disappoint in later months and we are still not above the 3% pace that the Fed would like to see. Today's report should still be marginally positive for the USD and see yields rise slightly," CIBC argues.