USD: US labour market on a solid trajectory

September 7, 2015

Lee Hardman, Currency Analyst at MUFG notes that the recent NFP data release has indicates the improving labour Market conditions in the US which is one of the key condition for the Fed to begin increasing rates.

Key Quotes

“The US dollar has remained on a firmer footing in the Asian trading session supported by the release on Friday of another solid US non-farm employment report which will move the Fed another step closer to raising interest rates. The report revealed that employment growth slowed to 173k in August, although it most likely under reports the true strength of employment growth and is expected to be revised higher in the future similar to in recent years0”

“The household survey was even more encouraging revealing that the unemployment rate declined by a further 0.2 percentage point to 5.1% moving into line with the FOMC’s longer run estimate of the unemployment rate at between 5.0% and 5.2%. The FOMC did not expect the unemployment rate to average as low 5.1% until the final quarter of next year.”

“The report provides further evidence that US labour market conditions have continued to improve which has been cited by the Fed as one key condition required to begin raising interest rates. Still the market remains unconvinced the Fed will begin to raise interest rates this month as it is placing greater weight on the heightened uncertainty in the near-term relating to the sharp correction lower in risk assets over the last month which could temporarily delay the normalization process.” 

Publication source
OctaFX information  OctaFX reviews

December 6, 2016
Cash rates remain on hold at 1.5% as expected
Asian stock markets managed to move mostly higher, after gains in Europe and on Wall Street yesterday. The Italian MIB closed with slight losses Monday, but it seems investors quickly got over the widely expected rejection of Italy’s constitutional reform and Renzi resignation...
December 6, 2016
AUD fell on RBA statement
The Reserve Bank of Australia decide to leave its policy settings unchanged. Such a decision was widely expected. The main, cash rate was left unchanged at 1.5% as expected by every analyst surveyed by Bloomberg...
December 6, 2016
Markets become increasingly acclimatized to negative news - adjustments never faster
Investors are getting used to bad news, and the lessons learnt in the past couple of months were implemented on Monday after the Italian referendum results...

HYCM Rating
Tickmill Rating
EXNESS Rating
Vantage FX Rating
HotForex Rating
Larson&Holz IT Ltd Rating

Porter Finance Rating
TropicalTrade Rating
OptionRally Rating
365BinaryOption Rating
Banc De Binary Rating
Empire Option Rating