Home Dec NFP: Not A ‘Barnburner’, But It Will Do’; USD
Opinions

Dec NFP: Not A ‘Barnburner’, But It Will Do’; USD

Wages are up 2.9% y/y  and this overshadows the small miss on job gains. Here is a quick take from CIBC:

Here is their view, courtesy of eFXnews:

It wasn’t a barnburner, but it will do. While non-farm payrolls increased by a below consensus 156k in December, net revisions and a solid rebound in wage growth more than offset that disappointment.

Net revisions for the prior two months saw employment increase by 19k jobs. Moreover, following a decline in average hourly earnings in November, the most recent month’s data revealed an increase of 0.4%, more than offsetting the prior month’s weakness. The annual rate of wage growth now stands at 2.9%, the fastest pace since mid-2009, leaving the Fed in a position to continue gradually edging rates higher. Separately, the trade balance widened to $-45.2 bn in November, which was slightly less than what the consensus had expected.

All told, the data releases today should be negative for  fixed income and positive for the US dollar.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting  Forex Crunch.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.