7 Feb 2014
Flash: A volatile time ahead - Westpac Banking Corporation ABN
FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation ABN said the US Jan employment report of course dominates the calendar ahead of the NY day ahead.
Key Quotes:
“… but with the usual risks on the report amplified by benchmark revisions, it hardly seems worth elaborating on forecast details, best just to brace for a likely volatile NY morning”.
“After the dismal 74K headline jobs gain in Dec, consensus is 180K. Westpac sees risks to the downside, given the “polar vortex” impact in Jan; economists often underestimate the impact of severe weather. Consensus is for the unemployment rate to hold at 6.7%, Westpac 6.8%”.
“A weak reading could do quite a bit of damage to USD as it would mean Janet Yellen would be fronting Congress for her first semi-annual testimony on Tuesday, having to explain why the Fed is so committed to reducing QE when the jobs recovery seems to have stalled”.
Key Quotes:
“… but with the usual risks on the report amplified by benchmark revisions, it hardly seems worth elaborating on forecast details, best just to brace for a likely volatile NY morning”.
“After the dismal 74K headline jobs gain in Dec, consensus is 180K. Westpac sees risks to the downside, given the “polar vortex” impact in Jan; economists often underestimate the impact of severe weather. Consensus is for the unemployment rate to hold at 6.7%, Westpac 6.8%”.
“A weak reading could do quite a bit of damage to USD as it would mean Janet Yellen would be fronting Congress for her first semi-annual testimony on Tuesday, having to explain why the Fed is so committed to reducing QE when the jobs recovery seems to have stalled”.