Why payrolls won’t help the dollar strengthen
2022.12.02 06:45
Why payrolls won’t help the dollar strengthen
Budrigannews.com – The most anticipated economic data in the US is Friday, but the market, which already behaves as if the tightening cycle has ended, may not have much significance.
To date alone, the yield on the two-year US Treasury bond, the most resistant to interest rate forecasts, has decreased by about 26 basis points to about 4.22 basis points. It would be one of the largest weekly declines in the last two years if it continued at this location.
The hypothesis, which is nearing the end of the fixing cycle, has further helped to raise the quotes this week to the highest levels reached in September. Optimization of inflation has reached a peak, indicating that the Fed may begin to slow down its aggressive rate hikes, should be refuted by some experts.
According to the Fed, federal reserve systems should be completed by December to justify changes in government markets. In addition, according to recent statements, the expansion process is not yet over for many economists and Fed policy makers. For many economists and Fed policymakers, this process is not over yet.
The president of the New York Central Bank, John Williams, on Thursday reiterated his belief that further increases in the cost of loans are expected in order to reduce the excessively high degree of pressure on prices.
What does the November non-agricultural employment report published at 13:30 GMT mean? After an increase of 261 thousand people in September, economists at Reuters predict that the US economy grew by 200 thousand this month. new places, which in December 2020 is the lowest figure since December 2019.
Graph: the number of people employed in the non-agricultural sector in the United States, a Reuters survey was conducted before the publication on Thursday of a report by the Institutes of Supplier Management, which showed that production in the United States declined for the first time in two years, and the labor index at factories fell sharply. Perhaps the markets expect fewer in the future in light of these markets.
This will undoubtedly strengthen the market’s hopes that the Federal Reserve Service (FRS) may raise the rate by 50 basis points at the December meetings. Investors may think about the release of US employment data.
On Friday, Chairman of the management Board Alexander Lehmann said that the credit union is accelerating the cost reduction, which was announced just a few weeks ago. This is a consequence of the fact that the outflow of buyers and the stoppage of activity affect the revenue forecast of the Swiss Bank. Its shares on Friday rose from a record low that was set on Thursday last year.
Due to a sharp increase in purchase requests, Blackstone Group limited the withdrawal of funds from non-registered real estate income REITs in the amount of $69 billion. This is a unique hit of the franchise, which helped the franchise become a leader in asset management. As a result of the buyout, investors worried about the future of the REIT.
Also, sources of the Reuters news agency reported that in the coming days Beijing intends to announce the weakening of the quarantine protocols for COVID, as well as the reduction of mass tests. This is a significant policy shift as a result of mass protests that fuel discontent with the strictest control of the world.
