Ahead of the report, fed funds futures were pricing in a 50% chance of a September rate hike and 32 bps of hikes this year. USD/JPy was trading at 156.13 and S&P 500 futures were up 2 points. This is a great report and there is a big US dollar bid in the aftermath. The jump in participation is a nice reversal from the recent trend and it's what kept the unemployment rate at 4.1% rather than lower. EUR/USD is quickly down to 1.1591 from 1.1623 but the clearest signal is in fixed income where US 2-year yields are up 7 bps to 4.40% in a sign the market thinks this in inflationary. In terms of sectors, education jobs are tricky at this time of year and we got a +34K, which offsets a -58K reading in July.
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