The US economy will certainly come under further close scrutiny following the weaker than expected payroll report on Friday and markets will look for Bernanke’s guidance on whether to sell the dollar. Much of the payroll disappointment stems from seasonal factors, especially the decline in retail and construction jobs, and it is dangerous to over-analyse the data for potential fresh US vulnerability. Nevertheless, the Sauron-like eye of media and market attention will swivel back round to the Federal Reserve and the possibility of fresh quantitative easing. The Fed will start to feel the pressure on the electoral ... (full story)