Prelim Nonfarm Prod (Q1 2008) Actual 0.8%, Expected 0.8%, Previous -0.6% (Revised from 3.2%)
Prelim Unit Labor Costs (Q1 2008) Actual 3.3%, Expected 2.6%, Previous 5.7% (Revised from 1.8%)

Release Explanation: The productivity per hour compared to the hourly rate of pay. Ahead of the NFP report this pales into significance, it does however provide an idea of wage inflation. Eventually it may impact the Employment Data, adds in part to the CPI numbers, and could eventually impact the PCE. This impact will be diluted over the time it will take to build. There is very little initial effect on currency valuations from this report. Trade Desk Thoughts: Non-farm productivity rose at a 0.8% annual rate in the first quarter of 2009, the labor Department said today, in line with economists' expectations.

The number indicates the economy still retains the ability to grow at a healthy pace, said Trade Team said. Once the housing market begins to stabilize, the potential for a recovery is there.
However, unit labor costs rose 3.3% annualized last quarter, meaning that the labor costs increased despite the rising unemployment rate. In the long term, this may trigger inflation.

Forex Technical Reaction: S&P futures continue to trade in positive territory and have advanced since the release. The dollar has strengthened, overall, since the release and is trading mixed against the other major currencies