US Non-Farm Payroll figures posted worse than expected
The UK Services PMI beat market expectations posting a bullish 55.6, the fastest rate since April. Improved order books and resilient client demand were cited as the reasons behind the growth. However, the rate of job creation saw a decline to a seven month low, whilst growth confidence remained muted. The bullish reading gave the Pound a slight boost, however, the dovish Bank of England meeting on Thursday continued to weigh on the Pound.
Across the pond, the US Non-Farm Payroll figures, posted worse than expected at 261k. Despite the bearish posting expected, this was the largest jobs gain since July 2016, as September showed a decline of 33k due to the devastating hurricanes in late Summer. However, the September figure has now been revised, showing a gain of 18k. The Unemployment Rate was also released showing a record low of 4.1, the lowest posting in nearly 17 years. The bullish Unemployment Rate boosted the Dollar against its major counterparties on Friday afternoon.
Today sees a very quiet start to the week, with no high tier data on the economic docket. The Eurozone will release the final version of the Services PMIs from Spain, Italy, France and German. The Services PMI for the Eurozone area will also be released, expected to post 54.9. Across the pond, FOMC member, William Dudley will be speaking about lessons from the financial crisis at the Economic Club of New York.
Tuesday will start with the release of the interest rate decision from the Reserve Bank of Australia, where they are expected to keep rates on hold. The recent below expectation Inflation Report and stronger Aussie Dollar has dashed any hopes of a raise in the near future. In the Eurozone, ECB President Mario Draghi will be delivering the opening remarks at the ECB forum on banking supervision. Across the pond, the US will release the JOLTS job openings report, expected to post 5.98m. FOMC member, Randal Quarles will be speaking at the Clearing House Annual Conference whilst Fed Chair Janet Yellen will be delivering the acceptance remarks at the presentation of Paul H Douglas Award for Ethics in Government. This will be Yellen’s first speech since it was announced that Jerome Powell has been appointed by US President, Donald Trump, to take over the role of Fed Chair. The day will end with the Bank of Canada Governor, Stephen Poloz, speaking about the ability to understand inflation at an event in Montreal.
On Wednesday, Canada will be releasing their Building Permits figure and Housing Starts, expected to post 220k. The weekly Crude Oil Inventories will be released from the US. New Zealand will be the focus of the evening as they release their Interest Rate decision. They are expected to keep rates on hold as the Kiwi slid last month due to the change in Government leadership, the New Zealand First party partnered with the Labour party instead of the National Party.
Thursday will be a quiet day with no high tier data on the economic docket. The US will be releasing their Weekly Unemployment Claims, expected to post 231k.
The US markets will be closed on Friday in observance of Veterans Day. The University of Michigan will be releasing their Prelim Consumer Sentiment report, expected to post 101. Back in the UK, the Manufacturing Production Figure and Goods Trade Balance are set to be released.