Market themes of the Day: The year of the Pig sees US Dollar stronger after strong NFP

What you need to know before markets open
Main themes:

• The US non-farm payroll report saw the headline number of new jobs rising above expectation by 304K in January from downwardly revised 222K in December while the average hourly earnings have increased by 85 US Dollar cents to $27.56, decelerating to 3.2% over the year. The unemployment rate ticked up to 4.0% in January. For more details read Yohay’s Analysis here.
• Headline non-farm payroll number once again confirmed high historical correlation with its forerunner, the ADP private employment report, correctly forecast in my Analysis here.
• Dallas Fed President Robert Kaplan said January job report shows a big jump in involuntary part-timers and that the report is “noisy” pointing to the fact that he prefers the Fed to keep rates on hold for months, not only weeks.  
• Chinese New Year begins, 2019 is a year of the Pig, the symbol of wealth.
• The US Dollar begins the first week of February on a high foot after strong January NFP report with the second tier indicators due on Monday                                                                                 

Europe

• German manufacturing PMI was revised lower to 49.7 in a final reading for January, the lowest level since November 2014.
• The Eurozone manufacturing PMI remained unrevised at 50.5 in January, also the lowest level since November 2014.
• The ECB executive board member Yves Mersch is scheduled to give a lecture in Budapest, Hungary at 8:30 GMT.
• Sentix investor’s confidence indicator is expected to decelerate to -1.1 in February from -1.5 in the previous month.

​​​​​​​UK

• The UK manufacturing PMI rose less than expected reaching 52.8 in January as Brexit uncertainty weighs on manufacturers.
• The UK construction PMI is expected to decelerate slightly in January to 52.6.

US

• The US non-farm payroll report saw the headline number of new jobs rising above expectation by 304K in January from downwardly revised 222K in December while the average hourly earnings have increased by 85 US Dollar cents to $27.56, decelerating to 3.2% over the year. The unemployment rate ticked up to 4.0% in January.
• The US manufacturing activity measured by ISM rose to 56.6 in January unaffected massively by the US government shutdown.
• The University of Michigan consumer confidence was upwardly revised to 91.2 in January.
• Dallas Federal Reserve President Robert Kaplan said inflation pressures are likely to be muted with Fed having a luxury of “patience” on rates with month on hold while describing January job report and a big jump in involuntary part-timers as “'noisy”.