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6 Nov 2015
US NFP to print 170,000 with steady unemployment rate – Danske Bank
FXStreet (Delhi) – Research Team at Danske Bank, estimate that the US job growth increased to 170,000 in October and that the unemployment rate was steady.
Key Quotes
“Job growth slowed to just below 140,000 on average in September and August, which in our view is below the pace (>150,000) needed for the Fed to initiate the hiking cycle.”
“The hourly earnings measure will be important as well. Wage inflation has been relatively subdued despite the impressive decline in the unemployment rate. This has raised doubt whether the unemployment rate is a good measure of the 'real' amount of slack in the labour market. If wage inflation starts to accelerate, it would be an important sign that the labour market has indeed become tight and would strengthen the case for a near-term Fed funds rate hike.”
Key Quotes
“Job growth slowed to just below 140,000 on average in September and August, which in our view is below the pace (>150,000) needed for the Fed to initiate the hiking cycle.”
“The hourly earnings measure will be important as well. Wage inflation has been relatively subdued despite the impressive decline in the unemployment rate. This has raised doubt whether the unemployment rate is a good measure of the 'real' amount of slack in the labour market. If wage inflation starts to accelerate, it would be an important sign that the labour market has indeed become tight and would strengthen the case for a near-term Fed funds rate hike.”