Morning Bulletin

Friday

Canadian Employment data truly stole the show in Friday’s trading, despite the fact it was of course US ‘Non-Farm Friday’. With expectations of a very modest 1,800 rise in the number of people employed and the overall unemployment rate to creep up to 6.0%, the Canadian Dollar rocketed in FX space as the data smashed those expectations. The Canadian economy actually created 78,600 jobs in December, with the Unemployment rate plummeting down to5.7%. This has firmly put another rate hike back on the cards for the Bank of Canada in their next meeting.
Earlier in the day Eurozone Inflation came in-line with expectations at 1.4% y/y. That was down from a previous 1.5% and shows price growth remains stubborn and a potential issue for the ECB in 2018.
US Non-Farm payrolls was the headline figure Friday but it dissapointed, with the 148,000 jobs created in December falling well below the expected 190,000 jobs.
The overall US unemployment rate remained at 4.1% as expected.
US ISM Non-Manufacturing PMI 55.9 (57.6 Exp)
US Factory Orders m/m 1.3% (1.1% Exp)

Overnight

Swiss CPI m/m 0.0% (-0.1% Exp)
German Factory Orders m/m -0.4% (0.1% Exp)
UK Halifax HPI m/m -0.6% (0.2% Exp)
US Federal Reserve member Mester said she expects four rate hikes in 2018.
In contrast Fed member Harker see’s just two rate hikes as necessary this year, going slightly below the three that has been forecast by the Central Bank itself.

Today

Typically quiet data calendar for a Monday, with no key data set for release.
Might be worth noting UK PM Theresa May is due to reshuffle her cabinet later today.
Please be aware that it is a bank holiday in Japan today.

Newsletter – 8th January 2017