-
Wages component key for payrolls report and the US dollar
The Federal Reserve sees no compelling reason to move on rates in either direction for now. Jerome Powell sees the recent inflation decline as “transitory” and this has reduced expectation of a rate cut in December. However, with the market still pricing a 50% probability of a cut this year, there is still a way to go for this to be priced out. Subsequently, today’s Nonfarm Payrolls report could be key for the dollar. The greenback has been boosted again in the wake of the Fed. A corrective slip had been threatening to accelerate, but Powell use of the word “transitory” turned that on its head. A strong ... (full story)