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5 Oct 2015
US jobs; nothing good to say about them - Danske
FXStreet (Guatemala) - Analysts at Danske Bank, explained that they have looked hard at the details of the September employment report, but find nothing positive to say.
Key Quotes:
"Job growth was weak, average hourly earnings remained low, average weekly hours declined and although the unemployment rate was steady, this was because of a huge drop in the labour force. Other labour market indicators have been more upbeat with initial and continuing jobless claims at low levels and the JOLTS survey showing a continued surge in the job opening rate."
"However, as we stated in our latest labour market monitor, job growth below 160,000 per month will be an obstacle for Fed rate hikes. Combined with continued anaemic wage inflation and our expectation that the ISM will linger around 50 in the coming months (see Flash Comment: Another weak US ISM manufacturing index) we think it will be increasingly difficult for the Fed to hike rates in December."
Key Quotes:
"Job growth was weak, average hourly earnings remained low, average weekly hours declined and although the unemployment rate was steady, this was because of a huge drop in the labour force. Other labour market indicators have been more upbeat with initial and continuing jobless claims at low levels and the JOLTS survey showing a continued surge in the job opening rate."
"However, as we stated in our latest labour market monitor, job growth below 160,000 per month will be an obstacle for Fed rate hikes. Combined with continued anaemic wage inflation and our expectation that the ISM will linger around 50 in the coming months (see Flash Comment: Another weak US ISM manufacturing index) we think it will be increasingly difficult for the Fed to hike rates in December."