Goldman Sachs views on a December Federal Reserve rate hike following the strong NFP report
Jan Hatzius (Goldman Sachs chief economist) says
- October employment report "solidly betterÂ-than-Âexpected"
- Now sees an FOMC rate hike at the December meeting as very likely
And, from Goldman Sachs' global macro research group (Robin Brooks, George Cole, Michael Cahill)
- Employment data has made December lift-off all but certain
- Markets (are) still suffering the after-effects of "The Interlude" - are hesitant to embrace dollar longs again
'The Interlude' they are referring to is:
- the period from the March FOMC to recent ECB and Fed meetings
On the USD, they say:
- We think there is little doubt that lift-off will be positive for the USD
- We see plenty of scope for Dollar strength as the Fed normalizes monetary policy, in part because the amount of stimulus in recent years has been so large and unusual
- EUR/USD to go to parity then lower
- To 0.95 within 12 months