Markets steady as key US non-farm payrolls data arrives…
Financial markets have regained their composure following a shaky start to the week. Even though tensions between the US and Iran are bubbling away in the background, many participants have been reassured by President Trump’s response to Iranian missile attacks that the situation will not escalate any further. The result has seen risk assets leap higher with the prime beneficiary being global stock markets.
Sterling wobbled yesterday following dovish comments from Mark Carney. The Bank are clearly sending a message that they are concerned by recent economic developments and that they’re additionally willing to react should they feel it necessary.
This week’s main event arrives today. US non-farm payrolls will be released at 1330. Estimates are for 164,000 jobs to have been added to the economy in the month of December. Wednesday’s private sector payrolls showed 220K added so things are teed up nicely for an interesting data release which has potential to surprise to the upside. The greenback could well see a reaction on the back of a positive report as expectations for tighter monetary policy increase.
Have a nice weekend.
Written by Viv Savani. 8:12am, January 10th 2020
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