Good US labor market report, but not so good - UBS

FXStreet (Córdoba) - Following the US nonfarm payrolls release, the UBS analyst team commented that even though the headline was far higher-than-expected, the drop in unemployment rate was mainly due to falling participation, showing the continued slack in the US labor market.

Key Quotes

“The US labor market report showed on Friday, that hiring in the US has been much stronger in April than markets had expected. 288k jobs had been created in April, compared to a 210k expected".

"Also the unemployment rate dropped a lot to 6.3% from 6.7% in March. However, a lot of this drop came on the back of a falling participation. Also wage growth has been flat, showing the continued slack in the US labor market”.

“US yields and the USD finished the day where they started, after a temporary jump”.