US: Solid jobs report for August - TDS

August was a solid jobs report from the US with some unusual details as Nonfarm payrolls beat expectations but net revisions were negative, explains the research team at TD Securities.

Key Quotes

“Unemployment held steady at 3.9% but the labor force cratered.”

“Wages popped 0.4% m/m for a 2.9% y/y growth rate, but similar jumps in the recent past have been revised away.”

“Looking past the noise, we expect this report to be plenty good to keep the Fed on track for rate increases in September and December, with additional hikes in 2019.”

“FX: A firm report should help the USD remain firm, though fresh catalysts are needed to drive meaningful gains from here on a broad basis. Given that trade anxiety persists, we think USD gains should be most prominent against the dollar bloc currencies.”