8 Dec 2014
Solid payrolls bring Fed into focus – TDS
FXStreet (Barcelona) - Analysts at TD Securities note that the strong US jobs print has bought fresh focus on Fed and the rate hike expectations.
Key Quotes
“Stellar US jobs and some signs of upward movement in hourly earnings (albeit at a still very modest rate overall) Friday will stoke speculation that the Fed will have to start adjusting its language (FOMC meets December 17th) and may be set to achieve rate lift off sooner rather than later as investors look ahead to prospects for 2015.”
“With recent developments also driving up speculation that the ECB will unveil more aggressive easing measures in Q1, EURUSD looks poised to remain under pressure. A disappointing take up of Thursday’s TLTRO will likely see QE-expectations build and spot pressuring major support around 1.22.”
“Overnight, disappointing Chinese trade data (wider surplus, driven by weaker exports) helped nudge the AUD to a new low before the market rallied. Focus on China combined with rate cut speculation in Australia offers another stark contrast to developments in the US and AUDUSD looks poised to extend weakness towards 0.79 in the next few weeks, at least according to our reading of the charts, despite today’s bounce. The USD still has a fair bit of upside potential in it broadly.”
Key Quotes
“Stellar US jobs and some signs of upward movement in hourly earnings (albeit at a still very modest rate overall) Friday will stoke speculation that the Fed will have to start adjusting its language (FOMC meets December 17th) and may be set to achieve rate lift off sooner rather than later as investors look ahead to prospects for 2015.”
“With recent developments also driving up speculation that the ECB will unveil more aggressive easing measures in Q1, EURUSD looks poised to remain under pressure. A disappointing take up of Thursday’s TLTRO will likely see QE-expectations build and spot pressuring major support around 1.22.”
“Overnight, disappointing Chinese trade data (wider surplus, driven by weaker exports) helped nudge the AUD to a new low before the market rallied. Focus on China combined with rate cut speculation in Australia offers another stark contrast to developments in the US and AUDUSD looks poised to extend weakness towards 0.79 in the next few weeks, at least according to our reading of the charts, despite today’s bounce. The USD still has a fair bit of upside potential in it broadly.”