FXStreet (Delhi) – Research team at Lloyds believe that today’s US labour market report for August will receive more attention than usual from markets due to the ongoing uncertainty over whether the FOMC will decide to raise its policy interest rates at its September meeting.
Key Quotes
“Today’s report will be the last before the September meeting and the Committee will want to see more evidence that employment growth is strong enough to lead to further decline in unemployment.”
“Other indicators suggest that the US labour market has continued to tighten. However, it is worth noting a tendency for the initial payroll estimate for August to surprise on the downside in recent years, then subsequently for it to be revised up significantly.”
“Today also sees the start of the G20 meeting of finance ministers and central bankers. The IMF has already cautioned against early Fed action and it is likely that other officials will use this opportunity to put pressure on Fed Chair Yellen and her colleagues.”
“Meanwhile, Richmond Fed President Lacker, who is a voter on FOMC policy this year and who is generally viewed as being at the hawkish end of the policy spectrum is set to give a talk entitled “The case against further delay”.”
(Market News Provided by FXstreet)