US Job Growth Slows in December
- The U.S economy added +148k in December, almost all of them in the private sector (Previous +239k vs. +193k e).
- The U.S service sector deeply hit.
- Well below the 2017 monthly average of +171k jobs added but is enough to keep up with population growth and chip away at unemployment.
- The labor-force participation didn’t budge in 2017 despite the +2m jobs added. Participation rate stands at +62.7% in December.
- The average hourly paycheck for private sector workers grew +2.5% in 2017. That suggests the labor market still has some slack despite the low unemployment.
- Hourly wages grew +9c , or +0.34%, in December from a month earlier.
- U.S yield curve 2/10 see a ‘bull’ flatter being priced in at +49 bps
Market reaction sell the USD (€1.2059, £1.3564, ¥113.34) and buy U.S treasuries.
Canadian Job Numbers explode
This morning’s strong data would likely increasing pressure on the Bank of Canada (BoC) to hike interest rates much sooner than the market has being calculating. Odd’s for a Jan hike next week are currently trading at +50%.
The CAD is up +0.88% at C$1.2369