IronFX Daily Commentary by Charalambos Pissouros | 03/02/2017
February 3, 2017 10:35 am
NFP preview: Upside surprise on the cards? • US NFP is exp. 175k in Jan., higher than 156k in Dec. We see upside risks to the forecast (ADP was 246k and other job indicators were solid). • Unempl. rate to remain unchanged, avg. hourly earnings to slow, but only slightly. • Despite a minor slowdown in earnings, looks like a strong report overall, which may support USD.
BoE remains neutral; signals it will continue to overlook inflation • BoE remained on hold as exp. We got a lot of signals, but the most important one was that the Bank is not in any hurry to raise interest rates. • This caused GBP to plunge, as investors pushed back their expectations for next BoE rate hike. • Outlook for GBP is cautiously negative in our view. Unlikely to draw support from either mon. policy, or political developments.
As for the rest of today’s highlights: • UK: Services PMI for Jan. is exp. to decline, though only slightly. GBP-negative. • US: Besides NFP, ISM non-manuf. PMI for Jan. Expectations are for a slight decline, which may hurt USD briefly (but overall direction likely to be decided by NFP). • Speakers: Philadelphia Fed President Patrick Harker.
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NFP preview: Upside surprise on the cards?
• US NFP is exp. 175k in Jan., higher than 156k in Dec. We see upside risks to the forecast (ADP was 246k and other job indicators were solid).
• Unempl. rate to remain unchanged, avg. hourly earnings to slow, but only slightly.
• Despite a minor slowdown in earnings, looks like a strong report overall, which may support USD.
BoE remains neutral; signals it will continue to overlook inflation
• BoE remained on hold as exp. We got a lot of signals, but the most important one was that the Bank is not in any hurry to raise interest rates.
• This caused GBP to plunge, as investors pushed back their expectations for next BoE rate hike.
• Outlook for GBP is cautiously negative in our view. Unlikely to draw support from either mon. policy, or political developments.
As for the rest of today’s highlights:
• UK: Services PMI for Jan. is exp. to decline, though only slightly. GBP-negative.
• US: Besides NFP, ISM non-manuf. PMI for Jan. Expectations are for a slight decline, which may hurt USD briefly (but overall direction likely to be decided by NFP).
• Speakers: Philadelphia Fed President Patrick Harker.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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