Further detail on the looming US jobs report as USD/JPY lifts towards 143.25

The August US jobs report will shortly be released, at 12.30pm GMT. As noted here earlier, the markets are looking for a modest rise in payrolls and a slight decline in the unemployment rate. However, there are other moving parts to this data and the most important of those is the level of average wages. So, we now take a brief look at what is expected there on an annualised basis. Wages rose by 3.6% in July and the markets are looking for a slight increase last month, to 3.7%. Anything north of 4% will cause a significant reaction across the markets as it might scupper any notion the Fed will move by more than 0.25% later this month, on September 19. On the flip side of that anything below 3.5% and the markets might start to push more earnestly for a 0.50% cut. In that regard, we note here; that Citibank is already in that camp and right now forecasting at least two 0.50% rate cuts from the Fed by the end of November. That is not a view that is currently shared here though. Meantime, since the last update here the USD/JPY has pushed higher now, rising above the 143 handle to around 143.20 just now