USD
U.S. job growth increased at a steady rate in October and the unemployment rate
fell to a fresh six-year low, underscoring the economy’s resilience in the face
of slowing global demand. Despite the strengthening jobs market, wage
growth remained tepid, suggesting little need for the Federal Reserve to hurry
to start lifting interest rates.

Employers added 214,000 new jobs to their payrolls last month, the Labour
Department said on Friday. The unemployment rate fell to 5.8 percent from 5.9

USD
U.S. job growth increased at a steady rate in October and the unemployment rate
fell to a fresh six-year low, underscoring the economy’s resilience in the face
of slowing global demand. Despite the strengthening jobs market, wage
growth remained tepid, suggesting little need for the Federal Reserve to hurry
to start lifting interest rates.

Employers added 214,000 new jobs to their payrolls last month, the Labour
Department said on Friday. The unemployment rate fell to 5.8 percent from 5.9
percent giving a further sign of strength.The jobless rate has dropped by 0.8
percentage point since January, and employment gains have now topped 200,000
for nine straight months, the longest stretch since 1994.

Last month’s increase was a bit smaller than economists had expected, but that
was offset by a combined 31,000 upward revision to data for August and
September. In addition to this  the hiring was broad-based and most of the
measures Fed Chair Janet Yellen tracks to gauge the amount of slack in the
labour market improved.

GBP
The Bank of England will produce its quarterly inflation report on Wednesday
which will have an impact on the pound strength . With wage growth still
largely absent and inflation dropping to just 1.2 percent in September, noises
from within the BoE suggest that the timing of a first interest rate rise could
be heading further over the horizon.

EUR
After European Central Bank chief Mario Draghi got his colleagues to sign up to
a target for pumping money into the ailing euro zone economy, a raft of GDP
reports are likely to show just why more help may be needed. The ECB did
not add to its arsenal of measures last week and is expected to wait and see
the take-up of a second round of cheap loans being offered to banks in December
before considering anything further.

But after signs of discord, Draghi did secure unanimous agreement that the ECB
balance sheet would “move towards the dimensions it had at the beginning
of 2012” when it was about 1 trillion euros higher than
now. Economists seized on the word “towards”, which casts some
doubt over whether it amounts to a hard target. And the ability of the ECB to
swallow its objections to full quantitative easing remains in question.

This week sees a raft of third quarter GDP reports from the euro zone, which
are unlikely to make comfortable reading. Spain has already reported reasonable
0.5 percent growth on the quarter and few if any of its peers are likely to
better that.

Key Announcements:
No announcements today

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