Market Brief: Nonfarm Payroll Day
01 Sep 2017
In the Eurozone everyone is waiting on tenterhooks for just when the ECB will make a tapering announcement.
Today's data release | Key levels | |||
---|---|---|---|---|
09.30 | UK Manufacturing PMI | Support | Resistance |
|
13.30 | US Nonfarm Payrolls | 1.2850 | 1.2980 | |
13.30 | US Unemployment rate | 1.0825 | 1.0875 |
Market overview
In the Eurozone everyone is waiting on tender hooks for just when the ECB will make a tapering announcement. Yesterday’s Eurozone inflation figures witnessed a slightly firmer than expected reading of headline HICP in August, with inflation strengthening to 1.5% (y/y) from 1.3%, consensus had been for a print of 1.4%. Meanwhile ‘core’ inflation (ex food, energy, alcohol and tobacco) remained steady, as expected at 1.2%. With next week’s ECB meeting looming large these figures had been highly anticipated, although yesterday’s readings do not change our view that the ECB will hold off a QE tapering announcement until its October Governing Council meeting.
The progress of Brexit negotiations in the UK appears to be making little progress in the right direction. International Trade Secretary Liam Fox stated overnight in Japan that the UK must not allow itself to be blackmailed. EU negotiator Michel Barnier said there had been little progress on key issues, and trade talks were "quite far" away. Talks between the UK and EU have stalled over the failure to agree the UK's so-called divorce bill. The UK wants to begin trade talks and discuss the future relationship between Britain and the EU as soon as possible, saying it would benefit both sides. However, Brussels insists that discussions about the future relationship can begin only once "sufficient progress" on the "divorce fee", citizens' rights, and the border between Northern Ireland and the Irish Republic.
The progress of Brexit negotiations in the UK appears to be making little progress in the right direction. International Trade Secretary Liam Fox stated overnight in Japan that the UK must not allow itself to be blackmailed. EU negotiator Michel Barnier said there had been little progress on key issues, and trade talks were "quite far" away. Talks between the UK and EU have stalled over the failure to agree the UK's so-called divorce bill. The UK wants to begin trade talks and discuss the future relationship between Britain and the EU as soon as possible, saying it would benefit both sides. However, Brussels insists that discussions about the future relationship can begin only once "sufficient progress" on the "divorce fee", citizens' rights, and the border between Northern Ireland and the Irish Republic.