FXStreet (Barcelona) – The Deutsche Bank comments on the US rate hike outlook, recent labour market data, and the key risk ahead – Janet Yellen’s speech.
Key Quotes
“Our US team concludes that, on balance, it lowered the likelihood of the Fed tightening as soon as the September FOMC meeting. However, there are two more payrolls reports before we get to that meeting. It is possible that some of the areas of softness in the June report will be reversed over coming months.”
“Some analysts have noted that the June survey took place comparatively early in month and that this could have had some impact on estimates of labour force participation and wage growth (in essence the applied seasonal factors may not be correct given the timing of the survey). If so, this should be rectified in next month’s report.”
“In the meantime we will be interested to see how Fed Chair Janet Yellen characterizes the report when she next speaks on the economy a week from now.”
(Market News Provided by FXstreet)