Next Friday, the US official employment report is due. Analysts at Wells Fargo, expected an increase in non-farm payroll by 160K.
Key Quotes:
“The exceptionally strong pace of hiring in December is unlikely to have persisted, and we expect hiring to slow below its recent trend. Government workers affected by the shutdown will still be counted as employed since back pay has already been approved, while the impact on contractors will probably be minimal since the survey was early in the shutdown.”
“Yet other data, including job openings, hiring plans and PMI employment indexes, suggest more moderate hiring recently.”
“Another strong print for payrolls and average hourly earnings would keep the FOMC on course to eventually raise rates twice more this year. A significant downside miss, however, would add support to the view that the FOMC needs to hold off on further rate increases longer than the committee currently anticipates.”
Share
