According to analysts from Brown Brother Harriman, the details of the US jobs report were mixed but unlikely to change views on the outlook for the Federal Reserve policy.
Key Quotes:
“The US dollar has slipped lower in response to the jobs data, but quickly recovered. The details are mixed, but is unlikely to change views on the outlook for Fed policy.”
“The headline job creation was in line with expectations at 178k. Job growth of the back two months were shaved by 2k, concentrated in October. The unemployment rate dropped to 4.6%, the lowest since 2007. The underemployment rate fell to 9.3% from 9.5%, the lowest since 2008. The declines were larger than one would have expected if driven by the decline in the participation rate, which slipped to 62.7% from 62.8%.”
“Today's report is unlikely to force a re-think by investors on either the trajectory of Fed policy or the outlook for the US economy. There may still be some scope for upward revisions to Q3 US GDP, and Q4 is tracking above the rolling four-quarter average.”
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