Nonfarm Payrolls see Dec bets placed – Rabobak

By FXStreet FXStreet (Guatemala) – Analysts at Rabobank noted Friday’s payrolls data did all but come in shiny wrapping paper with the words “December hike” written on them.

Key Quotes:

“The headline figure was vastly above expectations at 271K, unemployment fell to 5.0% (and underemployment to 9.8%), and average weekly earnings were two ticks higher than consensus at 2.5% y-o-y. As always, of course, one can quibble over the underlying contents of the report in that the infamous birth/death model once again made a large contribution to the total figure (a brave assumption at this late stage in an economic cycle), and wage gains were concentrated in just a few professions.

Yet there’s no denying the long queue of forecasters now standing behind our own Philip Marey, who has been patiently at the head of the “December” queue for a long time. 10-year US Treasury yields are now at 2.32%, the highest since July, EUR has slumped back to 1.0740, while JPY is at 123.3: one wonders where both those currencies will head if we see further QE ahead – or will those plans now be shelved just because the Fed are going to hike 25bp? (If so, how much clearer can they …read more

Source:: FX Street