HiFX comments on the US employment report
Chris Towner, director of FX advisory services at foreign currency specialists, HiFX, comments on the US employment report.
“The latest US employment report has helped ease the August lull in volatility that we have been experiencing. 215k jobs have been created and the unemployment rate remains unchanged at 5.3%.
“In reaction to this data, the US dollar initially strengthened, as some are interpreting this report as a green light for a September rate hike in the US. However, this is still uncertain as the data was far from substantial in providing the market with reassurance that the labour market is solid. Now that talk of rate hikes has had an opportunity to seep through into the market, expect the US recovery story to slow and yet again stall the need for rates to go higher.
“This week demonstrates that the market remains sensitive both in the UK and the US to the potential of rate hikes and perhaps as the weeks unfold the vulnerability of the world economy to rate hikes will become clearer.
“GBP/USD dealing pretty much unchanged on the news at 1.5500.”
