Fed get a good NFP’s result – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman noted that the US grew nearly 300k jobs in December.

Key Quotes:

“The October and November job growth was revised up by 50k. The unemployment rate was unchanged at 5.0%, even though the participation rate ticked up.

If there was a disappointment it was that hourly earnings did not rise as much as expected. Earnings still grew 2.5% year-over-year vs. 2.3% in November. The market had expected a 2.7% pace. Still, it is the upper end of the cycle.

Some other details were constructive. Manufacturing gained 8k jobs. The market expected a loss of 2k. The November series was revised up from -1k to +2k. The household survey found that employment rose by 485k, the most since the start of last year.

The recent string of US economic data has disappointed. Q4 GDP appears to be tracking less than 1%, according to the Atlanta Fed. However, the strong jobs report will go a long way toward assuring the Fed’s leadership that the broad strategy outlined is still valid. Fed officials could hardly have hoped for a more supportive …read more

Source:: FX Street