USD is relatively steady in early US session after release of slightly better than expected employment data. The NFP report showed 155k job growth in December versus consensus of 145k while November’s figure was revised up from 146k to 161k. Unemployment rate was unchanged at 7.8% while November’s figure was revised up. Dollar manages to hold on to post FOMC minutes gain so far, except versus Canadian dollar. The Loonie was boosted by unexpectedly strong employment data which showed 39.8k growth in December. Unemployment rate also dipped to 7.1% versus consensus of a rise to 7.3%. Also released from Canada, IPPI dropped -0.3% mom in November while RMPI dropped -1.9% mom.
Released earlier today, Eurozone PMI services was finalized at 47.8 in December as expected. Flash CPI estimate was unchanged at 2.2% yoy in December. UK PMI services unexpected deteriorated to 48.9 in December, back in contraction region. Mortgage approval rose slightly to 54k in November. Sterling is the relatively weaker European major today as also seen in recovery in EUR/GBP.
Released yesterday, the FOMC minutes for the December meeting revealed that policymakers were split on the timing to end asset purchases, signaling the possibility of terminating the program by the end of 2013. As mentioned in the minutes, “a few members expressed the view that ongoing asset purchases would likely be warranted until about the end of 2013, while a few others emphasized the need for considerable policy accommodation but did not state a specific time frame or total for purchases”. Some even thought that the central bank should to slow or to stop purchases well before the end of 2013 “citing concerns about financial stability or the size of the balance sheet”. Financial markets were disappointed by the minutes with stocks and commodities losing ground while USD extending gains.
EasyForexNews Research Team