US job creation below expectations again

The US economy added 559k new jobs in May, twice more than in April, but much less than what the ADP survey and jobless claims figures suggested. This tends to reinforce the Fed’s dovish strategy, although higher inflation should nevertheless quickly justify a reduction in bond purchases. Janet Yellen said a bit more inflation and slightly higher interest rat would be a “plus”, but the bond market remains calm, the US 10y rate staying below 1.6%. The USD was also slightly lower after the job report, but the EUR/USD exchange rate remains below 1.22 ahead of the ECB meeting and the US inflation data this week.