Forex Trading Library

US Jobs Report Favors December’s Rate Hike

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Friday came with the publication of ABS’s (Australian Bureau of Statistics) latest data which showed an increase in the retail volumes with 0.5% in October, after September’s 0.4% rise, the figures matching the forecasts. Trend estimates for the retail turnover in Australia went up 0.3% in October, continuing September’s similar rise. Yoy (year-on-year) the trend estimate went up 3.9% in the month of October.

Switching to another continent, official reports about Canada showed a net loss of 35,700 jobs in November only, the unemployment rate going up to 7.1% from previous 7%. Comparing with previous 44,000 jobs added in October and the expected decrease of only 10K, latest figures seem to off charts, including the unemployment rate which was expected to remain at 7.0%. Since last November jobs increased by 124K or 0.7%, while the numbers of worked hours went up 1.1%.

The EUR/USD major lingered within the daily boundaries, even as new information about 211K new jobs in the US for the month of November came out. The data was good, as actual figures beat the estimated 200K but were under October’s +298K (results revised from 271K). The same batch of data showed a constant jobless rate at 5.0%, in line with estimations, and 0.2% increase in hourly earnings mom (month-on-month). Also, the report puts to rest any fears regarding the shadow of any slow in consumer spending, manufacturing or service industry left by other releases.

ECB’s (European Central Bank) President Mario Draghi declared that the bank has decided over an adjustment in the bond buying program, also stating that no limit is set on the number of policy tools that can be deployed in order to reach their long term objectives. Draghi openly approved ECB’s decision saying that it was never its purpose to meet market expectations, with the risk of deflation minimized as much as possible and with results gradually translating into inflation.

The black gold closed last week in losses, a new decrease in prices being registered as OPEC’s (Organization of the Petroleum Exporting Countries) decision of raisins their production in spite of the global glut hit the press. The WTI (West Texas Intermediate) barrel fell from the session’s peak at $41.98 to under the psychological $40.00 handle to reach $39.61, closing the day at $39.98. In percentages, the trend registered a 2.64% loss during the day, reverting all its Thursday gains and closing the week 4.0% lower.

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