3 Feb 2015
Markets tilted more towards falling oil and global growth than US growth – NAB
FXStreet (Barcelona) - According to NAB, markets pushing back expectations for a US rate hike is more a case of weak European & Chinese growth and deflation concerns because of falling oil, than the strong US growth.
Key Quotes
“The final major event of the week is the monthly US non-farm payrolls report on Friday night. Market expectations are for a 235K increase in payrolls (another solid result) and an unchanged unemployment rate of 5.6%.”
“The Fed’s FOMC statement of last week made clear that the path of US interest rates will be influenced by the progress being made toward the Fed’s joint mandates on inflation and growth, of which the labour indicators remain a key variable on both fronts.”
“For now, even the suggestion last week that rate rises might start later, even though the Fed also suggested the timing could be advanced, was enough to see markets push back the pricing of the commencement of rate hikes.”
“It continues to be the case that the markets seem more fearful of the near-term impact on inflation and the threat of deflation from sharply lower oil prices and weak growth in Europe and China than the strengthening in US growth and the significant boost to growth that will likely occur further in the future on account of much lower oil prices.”
Key Quotes
“The final major event of the week is the monthly US non-farm payrolls report on Friday night. Market expectations are for a 235K increase in payrolls (another solid result) and an unchanged unemployment rate of 5.6%.”
“The Fed’s FOMC statement of last week made clear that the path of US interest rates will be influenced by the progress being made toward the Fed’s joint mandates on inflation and growth, of which the labour indicators remain a key variable on both fronts.”
“For now, even the suggestion last week that rate rises might start later, even though the Fed also suggested the timing could be advanced, was enough to see markets push back the pricing of the commencement of rate hikes.”
“It continues to be the case that the markets seem more fearful of the near-term impact on inflation and the threat of deflation from sharply lower oil prices and weak growth in Europe and China than the strengthening in US growth and the significant boost to growth that will likely occur further in the future on account of much lower oil prices.”