Michael Woolfolk Report Quotations

Given recent Fed warnings over high levels of capacity utilization and low levels of unemployment, today's report increases the probability that the Fed will raise rates above 5.0% later this year. Last Friday's release of March unemployment further buttresses this view.

This was a report that was made to order for dollar bulls.

This was a report that was made to order for dollar bulls. The market was predisposed to buy dollars and the report added gasoline to the fire.

This report is nothing short of remarkable. The formula for a strong dollar is strong growth, tight monetary policy and loose fiscal policy. The U.S. happens to have all three. Private investors are comfortable investing in a country like the U.S.

The monthly GDP report fed into underlying CAD strength. With political risk subsiding, rising interest rates and fundamental economic strength are prompting CAD buying, which is expected to continue through year-end as USD/CAD heads for the 1.10 mark.

The dollar rally after the non-farm payrolls report underscores the continued importance of labor market tightness with respect to interest rate expectations.

This was undeniably a positive report. Today's report could very well tip off a strong, albeit short, week for U.S. economic data.