Interest rate focus turns to US on nonfarm payroll day

7 August, 2015

After the excitement of the Bank of England’s Super Thursday where sterling lost over 100 pips against the dollar and nearly the same against the euro, the attention moves to the US where we see the penultimate nonfarm payroll ahead of September’s FOMC meeting. This figure is important following comments from FOMC voting member Lockhart earlier in the week where he strongly suggested September should be the month the Fed moves to increase interest rates for the first time in over nine years. The market expects a figure of 222k with the unemployment rate remaining at 5.3% and once again the average earnings figure will be closely watched as well, expected at 0.2% month on month. All eyes will be on how the dollar and Treasury yields react to today’s figure which have pulled back a little following Wednesday’s poor ADP figure. With both the Federal Reserve and Bank of England emphasising that their decision to raise interest rates remains data dependent, figures like today’s nonfarm payroll have the potential to produce some fireworks.

At the same time there’s unemployment data from Canada so the most action could potentially be in the USDCAD rate which recently hit a 10 year high. Trading at 1.3110 this morning bulls will be watching for a break above the 1.3200/15 level for further gains.


Source link  
The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...

Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

Risk-sensitive currencies on the rise

Stock markets show growth after the release of strong data for China and Japan as their respective PMIs were better than expected which supported...


Trump again puts pressure on OPEC

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year...

Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback...

May won't ask for a long Brexit delay

Prime Minister Theresa May won't ask the European Union for a 'long' delay to the Brexit deadline, her office said, after pro-Brexit ministers objected...


Demand for safe assets grows

Markets remain under moderate pressure, despite the Fed comments. Powell's semi-annual speech in Congress reinforced expectations that the US Central Bank...

US-China trade talks: deadline postponed

China's blue-chip index jumped more than 6% on Monday morning on news that Trump would postpone of the tariff's introduction. The U.S. President...

China buys American oil again

The first U.S. oil shipments to China in months will reach their destinations just days from now, punctuating a pledge by President Donald Trump in December that China would begin buying...

  


Share it on:   or