NZ shows solid jobs growth
City Index November 6, 2013 2:56 PM
<p>The FX markets in the G10 space remained within this week’s ranges ahead of the ECB meeting tomorrow and what looks to be a distorted […]</p>
The FX markets in the G10 space remained within this week’s ranges ahead of the ECB meeting tomorrow and what looks to be a distorted US jobs report on Friday following the US government shutdown.
The dollar traded with slightly bearish bias overnight as US 10-year yields closed slightly lower at 2.67%, which also coincided with a Fed study written by William English, the head of the Federal Reserve’s monetary affairs division, that will be released on Friday at a conference hosted by the IMF.
The 71-page paper argues that the Fed’s unemployment threshold for rate increases would be more effective if it were to lower from the 6.5% mark to possibly 5.5%, thus waiting until the job market was significantly better before raising rates.
Some of the Fed members, as the September minutes showed, are against lowering the 6.5% unemployment target but Mr English’s study model (known as ‘optimal control’) have been cited in speeches from none other than incoming Governor, Janet Yellen.
The NZD was given a lift following the release of the jobs report, which rose 1.2% in Q3 versus the 0.5% expected while the unemployment rate remained unchanged at 6.2% as the participation rate increased from 68.1% to 68.6%.
Today we see if the UK industrial production can follow the robust PMI data seen yesterday with EU service PMI and retail sales data also to be released this morning and the US session bringing us second tier data in the form of leading indicators.
Supports 1.3450-1.3420-1.3385 | Resistance 1.3530-1.3555-1.3580
Supports 98.15-97.80-97.45 | Resistance 98.80-99.00-99.30
Supports 1.6040-1.6000-1.5975 | Resistance 1.6125-1.6205-1.6260
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