People wait in line to enter a job fair in Uniondale, New York. Photo: Reuters / Shannon Stapleton

July’s payrolls were revised down from 209,000 to 189,000. Most importantly, average hourly earnings rose only 0.1% month on month vs. an expected 0.2% gain.

The fact that wages have failed to gain ground despite steady employment growth is a frustration for the Federal Reserve, which has looked forlornly into the horizon for the appearance of the Phillips Curve during the past year.

The euro rose sharply to 1.195 US equity futures rose (with Dow futures up +61 points at 8:33), anticipating a less aggressive Federal Reserve. Bond yields were nearly unchanged.