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4 Jan 2016
FOMC minutes and labor report to be the important mundane events of the week - SocGen
FXStreet (Delhi) - Kit Juckes, Research Analyst at Societe Generale, suggests that the important mundane events of the week ahead include the minutes of the December FOMC meeting (on Wednesday) and the December “Labor Report” on Friday.
Key Quotes
“Given a lively debate about whether the US economy will go on growing, and by how much the FOMC will raise rates in 2016, these may be ‘mundane’ but they are definitely important. My guess – we’ll see some negative news in early 2016 from the manufacturing sector in the US as everywhere else, but the consumer and the labour market will be in decent shape.”
“The trend in the US jobs data has been so consistent – just over 200k jobs per month, steadily falling unemployment rate and steady wage growth - that I expect it to continue to now. And therein lies the first pillar of a strong dollar view, however consensual. I can’t see a way round the tightening US labour market and steady growth delivering more monetary divergence, enough to keep the dollar strongish.”
Key Quotes
“Given a lively debate about whether the US economy will go on growing, and by how much the FOMC will raise rates in 2016, these may be ‘mundane’ but they are definitely important. My guess – we’ll see some negative news in early 2016 from the manufacturing sector in the US as everywhere else, but the consumer and the labour market will be in decent shape.”
“The trend in the US jobs data has been so consistent – just over 200k jobs per month, steadily falling unemployment rate and steady wage growth - that I expect it to continue to now. And therein lies the first pillar of a strong dollar view, however consensual. I can’t see a way round the tightening US labour market and steady growth delivering more monetary divergence, enough to keep the dollar strongish.”