27 Feb 2015
February's US labour and ISM data to support the June rate hike case – ING
FXStreet (Barcelona) - According to ING, February’s labour report and ISM indicators in the US might show signs of strengthening, which might boost the case for a June rate hike.
Key Quotes
“The US focus will be on the February labour report and the ISM indices since clear strength in these reports will heighten expectations for a change in language from the Federal Reserve at the upcoming March FOMC meeting.”
“The January labour report showed pay picking up and employment continuing to rise robustly, suggesting a tightening of labour market conditions that could lead to rising inflation pressures down the line.”
“On the other hand, the ISM manufacturing index fell back, suggesting that the business outlook wasn’t looking quite so positive.”
“However, we suspect both reports will show strength this time. We believe that the unemployment rate will fall back to 5.6% and pay rates will continue trending higher.”
“At the same time we anticipate a modest improvement in the ISM manufacturing series given regional indicators have been positive. Such outcomes would boost the case for a June rate hike.”
Key Quotes
“The US focus will be on the February labour report and the ISM indices since clear strength in these reports will heighten expectations for a change in language from the Federal Reserve at the upcoming March FOMC meeting.”
“The January labour report showed pay picking up and employment continuing to rise robustly, suggesting a tightening of labour market conditions that could lead to rising inflation pressures down the line.”
“On the other hand, the ISM manufacturing index fell back, suggesting that the business outlook wasn’t looking quite so positive.”
“However, we suspect both reports will show strength this time. We believe that the unemployment rate will fall back to 5.6% and pay rates will continue trending higher.”
“At the same time we anticipate a modest improvement in the ISM manufacturing series given regional indicators have been positive. Such outcomes would boost the case for a June rate hike.”