Is it Really About US Jobs Data Today ?
by Marc Chandler
http://3.bp.blogspot.com/-8OSs67_6tq...320/winter.jpg
The US employment data tends to be among the most important economic reports in a given month. After the dismal December jobs report, there is much anticipation for the January reading. Yet the risk is that today's report proves anti-climactic.
The data will be particularly noisy due to three influences: weather, benchmark revisions and the loss of emergency unemployment benefits (a three month extension was rejected by the Senate earlier this week). Moreover, one of the reasons the US jobs data tends to be important is because of the policy reaction function of the Federal Reserve. Before the FOMC meets again, it will see the Feb jobs report as well. This means that from a policy making point of view, the January data out today may not be that significant.
The euro had been treading water in Asia and early Europe, but retreated to the lows near $1.3550 in response to unexpected news that the German Constitutional Court has substantial concerns that OMT exceeds the ECB's mandate and has referred the case to European Court of Justice. It will rule on its standing vis a vis the German constitution on March 18. The timing and aggressiveness of its stance has taken the market by surprise.
marctomarket
by Marc Chandler
http://3.bp.blogspot.com/-8OSs67_6tq...320/winter.jpg
The US employment data tends to be among the most important economic reports in a given month. After the dismal December jobs report, there is much anticipation for the January reading. Yet the risk is that today's report proves anti-climactic.
The data will be particularly noisy due to three influences: weather, benchmark revisions and the loss of emergency unemployment benefits (a three month extension was rejected by the Senate earlier this week). Moreover, one of the reasons the US jobs data tends to be important is because of the policy reaction function of the Federal Reserve. Before the FOMC meets again, it will see the Feb jobs report as well. This means that from a policy making point of view, the January data out today may not be that significant.
The euro had been treading water in Asia and early Europe, but retreated to the lows near $1.3550 in response to unexpected news that the German Constitutional Court has substantial concerns that OMT exceeds the ECB's mandate and has referred the case to European Court of Justice. It will rule on its standing vis a vis the German constitution on March 18. The timing and aggressiveness of its stance has taken the market by surprise.
marctomarket
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