The non-farm payrolls data: US non-farm payrolls added 339,000 jobs in May (190,000 expected), the unemployment rate also rose more than expected to 3.7% (3.5% expected) and the much talked about average hourly wage was 4.3% per annum (4.4 % expected)
The non-farm payrolls data is also an important indicator of the Fed's strategy to raise interest rates. After the release of the data, the CME "Fed Watch" tool showed the expectation of the FOMC remaining unchanged in June, from close to 80% slightly down, but the change was not significant; the probability of a 25 basis point rate hike in July rose slightly to near 50%.
"Nick Timiraos, the Fed's sounding board, writes that Friday's non-farm payrolls report did little to change the Fed's debate on whether rates should remain steady this month. But it increases the likelihood that officials will combine a pause in the June rate hike with a preference for a rate hike later this year, and a continued strong labor market could lead officials to raise rates more than expected.
