US Employment Report supports view of a decent rebound in GDP growth in Q3 – Rabobank
|"Today’s Employment Report supports our view that we will see a decent rebound in GDP growth in Q3," noted Rabobank analysts.
Key quotes
"However, the extreme swings in economic activity that we are now seeing are caused by the lockdown and reopening of the economy, and it will take until Q4 before we see old fashioned – and more muted – demand fluctuations driving GDP growth. Then we will see how strong the recovery really is."
"On June 10, the FOMC is expected to publish its first set of economic projections since the outbreak of Covid-19, after conveniently skipping the March round and leaving it to others to prepare the public for the awful economic data that we have seen."
"In the near-term the Committee is likely to focus on working out its forward guidance on rates and asset purchases. In addition to tweaking its formal statement, the dot plot also gives the FOMC an opportunity to provide forward guidance. Meanwhile, the Board of Governors will continue to expand its special lending facilities."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.