Where Now After NFP? - ANZ
Analysts at ANZ explained that the NFP report had something for
everyone, but it does confirm the ongoing improvement and absorption of
slack in the labour market.
Key Quotes:
"The
probability of a hike from the Fed is only 8% priced for June and 50%
by the end of the year. That seems too low for a “live” meeting, but it
highlights the huge difficulty facing the Fed."
"Data releases
apart, for a central bank that prides itself on nurturing market
expectations, it has a mountain to climb to raise rates in June if it
deems that appropriate. Should a central bank lead? Academics could give
you chapter on verse on that.
But Yellen’s remarks back in
March that the better tone to financial markets was a result of
re-priced interest rate expectations helped to cede control to the
markets and, without volatility picking up, it will be hard to take that
control back.
The market will be listening closely to the
various Fed members due to speak this week (Evans, Kashkari, Dudley,
Rosengren, George and Williams)."
