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10 Apr 2013
Forex Flash: US unemployment to shed 0.5% per year – UBS
FXstreet.com (Barcelona) - According to Research analyst Gareth Berry at UBS, “The information value of the upcoming FOMC minutes release may have been reduced by the adverse employment report, but nonetheless markets are still closely watching for further clarity on the execution of the Fed's intermediate thresholds.”
At the current pace of employment declines, many will still wonder whether mid-2014 for 6.5% is realistic, and Cleveland Fed Chair Pianalto said earlier this week that averages of 7.5% and 7.0% should be expected for this year and next. In the first press conference after thresholds were announced, Fed Chairman Bernanke stated that he wished their introduction would allow markets to start responding more to data. In practice though, this will still be far from the case until further guidance is offered.
At the current pace of employment declines, many will still wonder whether mid-2014 for 6.5% is realistic, and Cleveland Fed Chair Pianalto said earlier this week that averages of 7.5% and 7.0% should be expected for this year and next. In the first press conference after thresholds were announced, Fed Chairman Bernanke stated that he wished their introduction would allow markets to start responding more to data. In practice though, this will still be far from the case until further guidance is offered.