Steven Englander, a currency analyst at Citi, has a great explanation of what today’s jobs report means for investors. Basically, no narrative has changed. If you think that the easy money parade will continue, then nothing from today’s report changed that.
So from an investor viewpoint, there is a very nonthreatening run-up to the June 18 FOMC. There is no reason for the Fed to change its narrative. Any investor who came into the labour market release thinking that policy and markets rates would be on a slow path to a low terminal level has no reason to change that view. Carry trades get another month of life.