4 Dec 2015
US nonfarm payrolls to print 200k number with unemployment rate at 5% - ING
FXStreet (Delhi) – Research Team at ING, suggests that in terms of the jobs figures, we expect payrolls growth of close to 200k with the unemployment rate holding at 5%.
Key Quotes
“But annual average earnings growth is likely to slip due to an unfavourable base effect despite growing 0.2% MoM. This should be consistent with the FOMC trigger clause for higher interest rates of “some further improvement in the labor market” and being “reasonably confident that inflation will move back to its 2 percent objective over the medium term”. Other US numbers include retail sales, which should be healthy given decent consumer confidence surveys.”
“In recent days Fed Chair, Janet Yellen, has been actively making the case for raising interest rates in the US. However, she emphasised that such action was still data contingent. The coming set of numbers, starting with today’s labour report, need to show that the economy continues to perform robustly. We believe they will and this will cement expectations for a 25bp rate hike on 16 December, especially given the market’s disappointed reaction to the latest batch of ECB measures that has reduced the upward pressure on the US dollar.”
Key Quotes
“But annual average earnings growth is likely to slip due to an unfavourable base effect despite growing 0.2% MoM. This should be consistent with the FOMC trigger clause for higher interest rates of “some further improvement in the labor market” and being “reasonably confident that inflation will move back to its 2 percent objective over the medium term”. Other US numbers include retail sales, which should be healthy given decent consumer confidence surveys.”
“In recent days Fed Chair, Janet Yellen, has been actively making the case for raising interest rates in the US. However, she emphasised that such action was still data contingent. The coming set of numbers, starting with today’s labour report, need to show that the economy continues to perform robustly. We believe they will and this will cement expectations for a 25bp rate hike on 16 December, especially given the market’s disappointed reaction to the latest batch of ECB measures that has reduced the upward pressure on the US dollar.”