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  
CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that further modest increases...

No Surprises as Fed Raises Rates

The Federal Reserve, as expected, raised its benchmark interest rate by a quarter of a percentage point, to a range of 1.25% to 1.5%. The latest hike...

CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...


No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...

OPEC Extends Output Cuts

On Thursday, OPEC (Organization of Petroleum Exporters) and non-OPEC producers led by Russia agreed to keep output cuts until the end of 2018...


US Economy Expands Faster Than Predicted

Data released on Wednesday showed that the US economy expanded at its quickest pace since 2014 in Q3. The US Commerce Department said that...

Political Turmoil in Germany Hurts EUR

The EUR lost ground against many of its peers on Monday on news that Chancellor Angel Merkel’s efforts to form a coalition government had collapsed...

USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

  


Share: