In the wake of the US jobs numbers on Friday, which saw the dollar softer as QE3 talk was once again re-ignited, the dollar has continued south, although only modestly so, the dollar index down around a further 0.2% in the aftermath of the release. In sum, the weaker headline payrolls data should be put in the context of what has been very strong labour market data over the past six months, above and beyond the messages from elsewhere in the economy. So if last week's release went some way to narrowing this gap, perhaps that is not such a bad thing after all? Furthermore, the numbers were not overly bad, with the unemployment rate still falling and manufacturing employment growing more strongly than expected. The Fed is still likely to put a lot of conditionality on further quantitative easing, a view Friday's numbers should not change
Also in today's Daily Forex Brief:
- The impending battle on the Swissie
- China back to black
- The struggle for stimulus in Japan
No comments:
Post a Comment