US: Business optimism on the rise – NBF

Sandeep Kanihama FXStreet Contributor

According to Krishen Rangasamy, analyst at National Bank Financial, a likely slowdown of U.S. GDP growth in Q2 and May’s below-consensus non-farm payrolls are fueling investor concerns.

Key Quotes

“But a deceleration should not be surprising after Q1’s unsustainable 3.1% GDP growth print, while May’s slowdown in employment creation seems to be temporary.”

“Small businesses are keen to increase employment and wages amid labour shortages. Interestingly 30% of NFIB respondents, the highest share this year, thinks that now is a good time to expand ─ that measure is highly positively correlated with the fed funds rate. All told, the market’s call for looser monetary policy is not consistent with latest data from small businesses.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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