US Watch – Job report: step closer to September hike

by: Maritza Cabezas

150805-US-Employment.pdf (151 KB)
  • The US labour market remained strong in July. Employment rose by 215K down from 231K the previous month. The unemployment rate was unchanged at 5.3%. Average hourly earnings, increased 0.2% mom and 2.1% yoy.
  • This report is pointing to diminishing slack in the labour market. We think the solid underlying fundamentals of the US economy support a September rate hike.
  • Investors have moved to price in a rate hike this year, but later than September, which suggests that there is further room for short-term yields and the US dollar to rise.