US bond traders took a little bit of a breather yesterday, with the recent relentless sell-off in Treasuries pausing for a day.
All eyes on Friday will likely be on the December nonfarm payrolls report.
Recent economic news out of the US has been largely encouraging, and economists are bracing for another solid, if not spectacular, report this afternoon. Consensus is for a job creation number around the 160k mark.
Focus may be on the monthly wage number, which will likely be of more interest for FOMC officials. Another annual print around the 4% level seems on the cards, with economists expecting a monthly number of +0.3%.
Yet, with the FOMC making clear to markets that it is in no rush to continue cutting rates, we suspect that even a very weak report won’t change things too much for the Fed, and could have a relatively minimal impact on the dollar.
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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