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11 Mar 2013
Forex Flash: Non Farm payrolls again highlights improving US conditions - BTMU
Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that the non-farm payroll report on Friday has again highlighted the better economic conditions in the US.
He writes, “The 236k gain in overall payrolls was far stronger than expected and the positive aspect of the report was the broad-based nature of the jobs gains – very key sector of the economy recorded jobs growth, suggesting a broadening of labour market improvement.” He continues to notes that there are a number of key reports this week starting tomorrow with the NFIB Small Business Optimism Index which has failed to show any notable improvement and remains mired at levels consistent with recession. He adds, “We will be watching this report closely to see if the ISM improvement of late is filtering through to smaller firms in the US – if so, it would be another positive for the US dollar. The key activity data this week will be industrial production data.”
He writes, “The 236k gain in overall payrolls was far stronger than expected and the positive aspect of the report was the broad-based nature of the jobs gains – very key sector of the economy recorded jobs growth, suggesting a broadening of labour market improvement.” He continues to notes that there are a number of key reports this week starting tomorrow with the NFIB Small Business Optimism Index which has failed to show any notable improvement and remains mired at levels consistent with recession. He adds, “We will be watching this report closely to see if the ISM improvement of late is filtering through to smaller firms in the US – if so, it would be another positive for the US dollar. The key activity data this week will be industrial production data.”