Single Currency Strong, Nonfarm Payrolls In Focus
The Euro/Dollar pair grew 0.18% to close at 1.1711. German Industrial Production rose 2.6%. Today, the US releases NFP report. The projection suggests decline to 195K, wage growth is expected to stay at 0.3% and jobless rate is forecast to remain at 3.8%.
Today the US will impose its promised tariffs on 34 billion dollars of Chinese imports, known as Section 301. Wang Yi, China Foreign Minister and a State Councilor stated that China will immediately respond with retaliation measures after the Section 301 is evoked.
Yesterday’s FOMC protocol noted that hiring was sustained, unemployment rate dropped, growth of household spending improved, business fixed investment rose in a steady pace, headline and core inflation were on track to 2%. But, long term-inflation expectations were little changed as: “Members viewed the recent data as consistent with a strong economy that was evolving about as they had expected.” The US-China trade war was also mentioned as harming the investments.