U.S. nonfarm payrolls likely to have rebounded in April, jobless rate to have dropped further

U.S. nonfarm payrolls data for April is set to be released tomorrow. According to a TD Economics research report, nonfarm payrolls are expected to have rebounded, adding 210k jobs in the month. March’s weak print of 103k greatly reflects a giveback from the blockbuster February gains that were focused in construction and continued strength throughout survey indicators, with some upside as April payrolls tend to beat expectations and outperform ADP employment in particular.

Given the continuous strong rate of job gains, the jobless rate is expected to have dropped to 4 percent assuming a stable to lower participation rate. Meanwhile, average hourly earnings are expected to have increased 0.2 percent sequentially as reference week distortions imply a high bar for a 0.3 percent or higher print.

“That should leave the y/y pace steady at 2.7 percent, consistent with the prevailing view at the Fed that wage growth remains only moderate”, added TD Economics.

At 21:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -43.3242. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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