Our economists expect Friday’s employment report to show robust payroll growth of 215k, which will put 3m average job growth at a powerful pace of 254k.
Indeed, given strength in the last two reports, even a 125k result on Friday would leave the 3m average running at 224k. So far this week, July personal income and spending met expectations for trend-like increases, while the core PCE deflator y/y rate held up firmer than expected at 1.6%, better than the 1.5% consensus and not far off the Fed’s 2.0% target.
Our position metrics suggest USD positioning was short heading into Chair Yellen’s speech last week, particularly vs. the JPY and AUD, implying more scope for the USD to gain ground vs. those currencies as US rates adjust higher.
Copyright © 2016 BNP Paribas™, eFXnews™Original Article
