Strong NFP Won’t Help The Fed

Strong NFP Won’t Help The Fed. A week after the FOMC, markets focused on jobs data hoping to assess the likelihood of a September rate hike. Nonfarm Payrolls beat expectations, printing at a solid 255k. However, historically, this data has been very volatile and even the improving labour conditions have not pushed yet the Fed to raise rates. The collapse of oil prices, the Brexit and then the US elections are or will be the Fed excuses for holding rates in 2016. In Asia, the overall tone is always one of dovishness. The RBNZ is expected to cut the OCR rate by 25bps, while in South Korea the central bank is taking more time to assess the effects of its previous rate cut.

See full report

This article is a guest blog written by Peter Rosenstreich from Swissquote