Fed December lift-off camp, rejoiced by strong NFP show - SocGen

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Delhi) – Kit Juckes, Research Analyst at Societe Generale, suggests that the FOMC members, who have been encouraging markets to price in a December lift-off, will be encouraged by the strong show of US nonfarm payrolls.

    Key Quotes

    “The US posted annual employment growth back (just) above 2% and wage growth is finally showing signs of life. The reaction to the data is barely more sensible than the reaction a month ago, mind you.”

    “The two-month headline payrolls average is 204K, which compares to a 5-year average of 202K. The 137K in September and 271K in October are just noise around a very steady rate of job creation that is taking the US unemployment rate down at a rate of about 1% per annum.”

    “That trend rate of job creation supports ‘2-point-something’ GDP growth and is inconsistent with a zero rate policy. The pick-up in wage growth to 2.5% y/y is a clear uptick but hardly scary, though it will surely be a catalyst for action unless the swings and roundabouts of the data calendar turn round again.”
    For more information, read our latest forex news.

Share This Page

free forex signals