Soft US jobs and growth please, focus on inflation data [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

America had another ‘bad news is good news’ moment yesterday; softer-than-expected ADP and growth data further fueled expectations that the Federal Reserve (Fed) is – maybe – good for a pause.

The S&P500 gained for the 4th consecutive session yesterday, as US 2-year yield settles below the 5% level. The softening Fed expectations are weighing on the US dollar, but keep in mind that the seasonality is on the dollar’s side in Septembers!

In Europe, the latest inflation numbers showed that inflation in both Spain and Germany ticked higher in August for the second month warning that the aggregate CPI number may not confirm a fall to 5.1% in headline inflation due to rally in energy prices. Later, the US core PCE data will say the last word before tomorrow’s jobs data.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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