5 Dec 2014
Strong US jobs data sends Dollar higher – BBH
FXStreet (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, notes that the strength of the US employment report is seeing the dollar jump across the board.
Key Quotes
“The divergent theme has been brought out in relief. The 321k rise in non-farm payrolls is the strongest print of the year and is the second monthly increase above 300k since early 2012 (the other one being this past April). On top of that, the back months figures were revised up by 44k.”
“Although the participation rate and unemployment rate were unchanged, other details of the report were favorable. The manufacturing sector added 28k jobs, almost twice what the consensus expected and the October increase was revised to 20k from 15k. This bodes well for industrial output.“
“Next week the US will report the broader measures of the labor market that the Yellen Fed places greater emphasis on. These include the Labor Market Conditions Index and the JOLTS report. The FOMC meeting later this month will provide new forecasts. The Federal Reserve has persistently under-estimated the improvement in the labor market (and over-estimated the increase in price pressures).”
Key Quotes
“The divergent theme has been brought out in relief. The 321k rise in non-farm payrolls is the strongest print of the year and is the second monthly increase above 300k since early 2012 (the other one being this past April). On top of that, the back months figures were revised up by 44k.”
“Although the participation rate and unemployment rate were unchanged, other details of the report were favorable. The manufacturing sector added 28k jobs, almost twice what the consensus expected and the October increase was revised to 20k from 15k. This bodes well for industrial output.“
“Next week the US will report the broader measures of the labor market that the Yellen Fed places greater emphasis on. These include the Labor Market Conditions Index and the JOLTS report. The FOMC meeting later this month will provide new forecasts. The Federal Reserve has persistently under-estimated the improvement in the labor market (and over-estimated the increase in price pressures).”