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  
Peaked trade optimism?

Throughout the past week, the US dollar has received support after strengthening expectations that the Fed will take an extended break after three consecutive rate cuts...

Russel 2000 doesn't support S&P500 optimism

S&P500 closed Monday at historical highs, adding 0.55% on the day close. Both expected new Fed interest rates cut and possible...

Oil drops on weak corporate data out of China

Oil prices fell on Monday after strong gains last week, as data released in China reinforced signs that its economy is slowing, though progress...


Market Sentiment Hinging On Progress In Brexit

The British parliament will vote on the Brexit agreement today at 18:00 GMT. In theory, this should be a simple vote, with a definite...

Market shows demand for yielding assets

The market shows demand for yielding assets, which in turn supports demand for the stocks and currencies of emerging markets. The main...

Yuan and Dollar as a weapon in trade wars

The US Nonfarm Payrolls on Friday could even be called boring: the report showed the preservation of a completely healthy labour market...


Disappointment with Fed and tariffs

Trump announced 10% tariffs on Chinese goods worth $300 billion since September 1, thus ending the US-China trade truce after disappointingly...

Fed pushes down stocks

Markets have started the week under pressure. Expectations that the Federal Reserve will cut interest rates by 50 points in July collapsed...

Gold updates new 6-years highs

Gold benefits from a combination of two factors: lower interest rates in debt markets and continuing hopes that the global economy...

  


Share it on:   or