US Jobs Growth Continues, However Wage Pick Up Slow
Headline jobs in the US rose 213k, which was pretty much on par with the median expectations (consensus on 200k), although, the range was pretty much set at 180-220k. However, wage pick was slower than expected and with inflation on the rise, this is a potential hiccup for the Fed, however, not enough to cause them to change their narrative or indeed their leaning towards hiking 4 times this year. It may cause them to focus on earnings a little more, and in that household disposable income, especially if they are raising rates and making financial conditions tighter.
All in all, it is not too much of a game changer at this stage. Although with the USD in retreat ahead of the numbers, some of the recent USD buying into this report is likely to come under some profit-taking pressure into the weekend (selectively so).
The focus has been on the EUR/USD rate which has now taken out the 1.1720 level, although there are more obstacles ahead at 1.1750-60 and then 1.1800. We then have to overcome the stronger levels at 1.1850-55. This may be left for another day and when looking at the DXY, the mid to low 0.9300's should provide support for the near term at least.
There is very little movement on USD/JPY, with a slight dip here looking to resist the bids seen at 110.30 earlier in the week. USD/CHF has given up the 0.9900 handle, tentatively so as yet and we see support here into the 0.9850 level.