FXStreet (Edinburgh) – Currency Strategist at BTMU Lee Hardman has assessed the recent results from the US labour market as well as the prospects for tomorrow’s Payrolls.
Key Quotes
“The release of the latest ADP survey yesterday revealed that the US economy added 190k private sector jobs in August. The reading was a little weaker than consensus expectations but broadly in line with the average reading so far this year of 196k”.
“At face value the survey is signalling that the US labour market has likely continued to improve which is one of the conditions that the Fed has set to begin raising interest rates”.
“However, the release of the non-farm payrolls report on Friday still presents some downside risks”.
“A weaker than expected non-farm payrolls report could initially weigh modestly on the US dollar although it would most likely be seen as under-reporting employment growth”.
“The release yesterday of the Fed’s latest Beige Book revealed further evidence of tightening labour market conditions. “Several districts reported increasing wage pressures caused by labour market tightening”, although it suggests wage growth remained sluggish nationally”.
(Market News Provided by FXstreet)