Highlighs of the December non-farm payrolls report:

  • Prior was 252K vs 228K previously reported
  • Estimates ranged from +132K to +240K
  • Two-month net revision-9K
  • Private payrolls 146K vs +193K expected
  • Unemployment rate 4.1% vs 4.1% expected (remains at lowest since 2001)
  • Participation rate 62.7% vs 62.7% prior
  • Manufacturing payroll 25K vs 18K estimate
  • Underemployment rate (U6) 8.1% vs 8.0% prior

Wages data

  • Average hourly earnings m/m 0.3% vs +0.3% expected
  • Prior avg hourly earnings 0.1% (revised from 0.2%)
  • Average hourly earnings y/y 2.5% vs +2.5% expected
  • Prior average hourly earnings y/y 2.4% (revised from 2.5%)
  • Average weekly hours 34.5 vs 34.5 exp

The wages are not showing an acceleration with the earnings coming in as expected but the prior month revised down -0.1% from previously reported. The YoY stays steady at 2.5%. BTW before the November report the YoY estimate for earnings was 2.7%. It still remains below that idea at 2.5%.

The dollar is lower with the EURUSD, GBPUSD making new highs for the day, but the EURUSD could not get to and above the 1.2092 high from 2017. The high reached 1.2082. We are currently trading at 1.2074. The USDJPY fell toward 113.00 from 113.28 and trades at 113.10 now.