19 Jan 2016
US wages leading indicators pointing higher – Westpac
FXStreet (Delhi) – Richard Franulovich, Research Analyst at Westpac, suggests that the Fed officials are no doubt acutely focused on the disinflation jolt coming from the strong USD, falling oil prices and weaker Chinese activity.
Key Quotes
“But, while the US economy is not overly strong, housing, the services sector and the labour
market – the key to outlook – are relative bright spots. The labour market is notably firming, with an array of anecdotal leading indicators suggesting that higher wages are just around the corner. The JOLTS, NFIB and Conference Board surveys all suggest US earnings could accelerate toward 3% in 2016. March Fed hike odds are underpriced at 37%.”
Key Quotes
“But, while the US economy is not overly strong, housing, the services sector and the labour
market – the key to outlook – are relative bright spots. The labour market is notably firming, with an array of anecdotal leading indicators suggesting that higher wages are just around the corner. The JOLTS, NFIB and Conference Board surveys all suggest US earnings could accelerate toward 3% in 2016. March Fed hike odds are underpriced at 37%.”