While the headline NFP number beat at 223k, there were more important aspects of the report.
Wage growth is the big issue, and came in less than expected at just 0.3%.
The dollar is down and seemingly heading back to the December lows, while stocks are rallying and trying to break form the long consolidation pattern.
After several weeks of sideways contraction, the S&P500 went into Friday’s NFP report wound tight. The US dollar was also gearing up for action as it poked its head above a two-week range. The jobs report has always been the highlight of the data calendar, but with the Fed now focused on curbing the rise in wages, its importance has been amplified.
A Key NFP
Now that inflation is trending lower, the US labour market is perhaps the last hurdle to a dovish Fed. And it’s a fairly large one. Last month’s NFP showed that average hourly earnings rose…