Fed nears last hurdle for rise interest rates – New York Report
Data due out on Friday is expected to show that US non-farm payrolls increased by 200,000 in November, keeping the jobless rate at a seven-year low of five per cent.
But even if the figures disappointed somewhat, the Federal Reserve is still expected to hike rates at its meeting on 16 December given near full employment, with the debate likely shifting to future rate hike.
The biggest headwind for the Fed could be the dollar’s rapid firming against major currencies in recent months, which has already effectively tightened monetary conditions. But US trade is less exposed to currency moves than elsewhere, such as in Europe, so the impact on policy is smaller.
Fed Chair Janet Yellen’s testimony to the Joint Economic Committee of the Senate on the economic outlook, due at the same time as European Central Bank boss Mario Draghi’s press conference, will likely give more clues about the Fed’s next moves.
We’ve got a week of Canadian bank results, begun by Bank of Montreal and the Bank of Nova Scotia with their quarterly results tomorrow. Next up is Royal Bank of Canada on Wednesday, and Toronto-Dominion Bank and Canadian Imperial Bank of Commerce on Thursday.
The fall in oil prices from July to September and its effect on the loan book is expected to be a big talking point, investors will also be looking to hear more about cost cutting plans.
The post Black Friday market is expect to deliver a boost to big retailers who’re likely to be bragging about the amount of money they have brought in. Estimates are all for well over $1bn for Friday spending and that could be set to increase considerably if shoppers keep it up.