Danske Research Team
Danske Bank A/S
Today, we have had several important data releases in the US as we got both the jobs report and the ISM manufacturing index for March. Overall, the data show that the labour market continues to do well and that the manufacturing cycle seems to have turned, the sector having struggled since late summer . The fear of a US recession seems to have faded, at least for now, and the likelihood of a June hike has increased as the strong data are consistent with the Fed's base scenario for the US economy. However, one has to remember that Fed chair Yellen seems to put more weight on the downside than the upside risks to the economy, and thus wants to see the economy continuing to do well before tightening monetary policy further.
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