US July NFP report - Analysts´ reactions

"The strong report reduces some of the concerns about the current economic situation in the US but we still need further data to confirm that both GDP growth and employment growth are still on track. Despite the strong jobs report for July, we stick to our call that the Fed will stay on hold for the rest of the year, although it makes a hike later this year more likely." - Danske Bank

"With an impressive run of job gains (average 190,000 in the last three months) and an above-expected print from average hourly earnings, a September rate hike from the Fed is in play. Stakes are high for Fed Chair Yellen’s 26 August speech at Jackson Hole, Wyoming, where she will not want to overcommit to a September hike ahead of August’s payrolls report just a week later, but still needs to prepare the markets for a possible move. We expect payrolls next month to post 215,000, which should be enough to deliver a September hike. If this materializes, the three-month average would be 254,000." - BNP Paribas

"The better than expected 255,000 increase in non-farm payrolls in July will renew speculation that the Fed might hike interest rates as soon as this September, but we still think Fed officials will want to see more evidence of a pick-up in GDP growth, which has been unusually muted for nearly a year now." - Capital Economics

"On the whole, this morning’s strong July employment report indicates that labor market health remains intact and, in our view, reduces near-term recession risk for the US economy. Furthermore, the print should boost FOMC members’ confidence in the outlook, especially following the unexpected weakness in Q2 GDP. We continue to expect the Fed to hike rates at its September meeting, and we look to Chair Yellen’s appearance at the Jackson Hole Policy Symposium on August 26 for confirmation of this view." - Barclays Research

"The Atlanta Fed wage tracker, which corrects (among other things) for the impact of retiring baby boomers (which weighs on wage gains) already shows a much more pronounced acceleration in labor costs. That is in line with the notion that the tight labor market is putting upward pressure on wages. Rising labor costs and further improvements in the labor market unequivocally suggest that a December rate hike remains in play – despite last week’s disappointing GDP number." - UniCredit Research

“The steady job market improvement and keeps alive the possibility of the Fed hiking rates again this year, but worries about sluggish economic growth and deteriorating productivity, as well as uncertainty created by the presidential election, suggests that any tightening of policy will be delayed until December. The problem facing the Fed is that the ongoing robust rate of job creation is taking place against a backdrop of weak output growth, suggesting productivity and profit margins are likely to be suffering." - Markit