FXstreet.com (Barcelona) - Marc Chandler, Global Head of
Currency Strategy at Brown Brothers Harriman notes that the US
created a net 155k jobs in December, which was a bit disappointing
to those who thought the ADP data was a reliable tell of a stronger
However, he comments that the details were stronger than expected.
These include an increase in the 0.1% increase in the average
weekly hours and a 0.3% increase in hourly earnings, the largest of
the year. Moreover, private sector jobs growth was stronger than
the headline as the government sector shed 13k jobs.
He adds, "The manufacturing sector added 25k of the private
sector's 168k net new jobs. The manufacturing sector remains a key
bright spot for the US economy. Upward revisions added another 38k
jobs, which if added back to the headline, would be close to the
200k increase that some economists forecast."
In 2012, the US economy created 158.6k jobs on average per month,
which is slightly down from the 175.4k 2011 average. The employment
data is consistent with a rise in manufacturing output and should
underpin income and perhaps to some extent consumption.
Seperately, Chandler notes Canada´s strong employment report. The
39.8k net jobs created were almost 8-fold more than the Bloomberg
consensus and even this understates a bit as 41.2k full time jobs
were created. Proportionately this would be as if the US were to
create about 400k jobs.
He finishes by writing, "The dollar has seen its gains pared in the
aftermath of the data, though the Canadian dollar is the only major
that is higher on the day against the Us dollar and even this is
marginally so. With the sharp downside momentum seen in recent days
in the euro easing, position squaring could see a move toward
$1.3050. Sterling has initial potential toward $1.6050-80. Yen
seems poised to consolidate against the dollar and recoup some
ground on the crosses."