Market Movers
Focus will be on the US labour market report for August where we look for still-solid employment growth of 205,000. The Conference Board's measure of the labour market (jobs plentiful less jobs hard to get) increased to a new cycle high in August, which is an encouraging sign. However, taking a broader set of labour market indicators into account, we estimate that job growth slowed to 205,000 in August, from a growth rate of 235,000 on average over the past three months. We estimate that the unemployment rate declined one notch to 5.2% - not far from the FOMC's NAIRU estimate of 5.0%.
Comments from Fed members generally attract attention and today Fed's Lacker, who is a voter and considered hawkish, speaks. However, his comments will be given ahead of the release of the job market report, which makes them less interesting.
In the euro area German factory orders are due for release this morning. They rebounded in Q2 due to stronger foreign orders, while domestic orders have been the weak link. The latest uncertainty about China has increased the risk of a continued cautious stance among businesses and, although the weakness will not be reflected in the figure for July, focus will be on whether there will be an impact on sentiment in the figures for coming months.
EUR/SEK dropped yesterday on the Riksbank and ECB.
To Read the Entire Report Please Click on the pdf File Below.