US: September payrolls to dominate the day ahead – RBC CM

Adam Cole, Research Analyst at RBC Capital Markets, suggests that the US September payrolls obviously dominate the day ahead, though the Fed will have two further reports in hand before we get to the next “live” FOMC meeting (December 14), which may slightly mute the market reaction to today’s release.

Key Quotes

“We would also note that, with the implied probability of a hike by December now around 70%, and plenty of obstacles to negotiate before the December meeting, short-term USD upside may be limited, even on a strong report. Expectations for the headline figure have not changed in the last few days and the consensus 172K increase is probably a fair representation of market expectations.”