Gearing up for Friday's U.S. employment.....>

US DATA: Gearing up for Friday's U.S. employment report, analysts expect the

April report to bounce back after the relatively disappointing March report,

expecting a gain of 185,000 for headline payrolls, a 195,000 increase in private

payrolls, a 0.1pp tickdown in the unemployment rate to 4.0%, a softening in in

average hourly earnings (AHE) to a 0.2% gain, and average weekly hours to remain

at 34.5. Unless the report holds a considerable surprise, markets will likely be

paying less attention to the report and more attention to what the Fed speakers

have to say later on Friday.

- In the last nine months, analysts have shown a tendency to overestimate

average hourly earnings, while markets are mixed between over and

underestimates. Overall, this gives a slight downside risk to average hourly

earnings. Further supporting the downside risk, the average hourly earnings rise

may be dampened by April's return to nice weather. Last month, average hourly

earnings shocked market participants expecting a meager 0.1% rise, as it boomed

in at 0.3%. However, this solid rise accompanied a lackluster payrolls print.

(MNI - For Full Story See Main Wire At 19:22 BST 05/03)