Jobs Jolt Crushes Cut Odds

The June NFP report beat expectations with 147K jobs added and a surprise drop in unemployment to 4.1%.

Daily Updates:

• Yesterday’s Nonfarm payrolls report in the US has poured cold water on the odds of a July rate cut by the FOMC. Exactly one month ago, 30 day fed funds futures had priced in a 28.5% probability for a 25bps rate cut in July – those odds have now been crushed to a mere 4.7%. 

• According to the report, the US economy added 147,000 jobs in June, far above the median expectation by Bloomberg economists, while the prior two months were revised higher by a cumulative 16,000 jobs.