Following a wall of discouraging data recently things turned more upbeat this week, as we received positive surprises from both the US and China coupled with a continued flow of solid eurozone data. There is little doubt that the US remains in a slowdown phase. However, the data published so
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The US Non-farm employment data posted better than expected results and revisions to the markets delight. As a result, we saw improved risk appetite. Expectations were for an overall loss of over 100,000 jobs and an increase in the private sector by 42,000 jobs. The street was pleased to see
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The US ISM non-manufacturing report should be considered the premiere survey of US business conditions as it covers the US services industries, which represent some 70% of the US economy. Today's report for August was very negative, at a barely expansive 51.5 vs. 53.2 expected and 54.3 in July. Particularly
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The ISM non-manufacturing index indicated that the sector grew for the eighth consecutive month, although the pace of expansion slowed more than was expected, as shown by the index dropping to 51.5 in August from 54.3 in July (a reading above 50 indicates the sector is generally expanding). Market expectations
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Payroll employment in August fell 54,000 in the month, which was about one-half of the 103,000 decline expected going into the report. Greater than expected strength in labour markets was also reflected in declines in earlier months being revised lower to 54,000 and 175,000 in July and June, respectively, from
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Total nonfarm payrolls declined by 54k in August, dragged down by a 114k decline in census employment. Excluding census, nonfarm payrolls increased by 60k and private employment gained 67k. On top of this, net revisions to June and July amount to +123k, although only about half of this (+66k) was
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The dollar gained sharply against the yen Friday after better-than-expected U.S. jobs figures soothed investor nerves that had been jangled by worries over the pace of the U.S. recovery. Currencies closely tied to the pace of global growth, such as the Australian and Canadian dollars, took advantage of the improved
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The forex market remained relatively calm this week. Whereas EUR-USD rose to over 1.28, the European single currency fell slightly against the Swedish krona, the Swiss franc and the yen, and also versus "commodity currencies" such as NOK, AUD, BRL and ZAR. The markets seem to be deviating somewhat from
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Good news from Ireland, at last. Europe's biggest mozzarella cheese supplier Glanbia saw profits soar 51% Y/Y and upped earnings growth. Supplying fast food restaurants and pasta manufacturers, it said stubbornly high unemployment especially in the US was helping them. It suggests that people have traded down from outings to
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Here is the market's apparent logic of late: we supposed to sell the USD because the economy in the US is looking so terrible and weak data means ever lower US yields and a Fed that will devalue the USD to save the economy. If the data in the US
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