A quick note from UBS, a useful heads up an important data point in the nonfarm payroll due Friday
(bolding mine BTW)
The bank starts with what is driving markets (no surprise here):
- inflation fears and CB worries are now the main driver
- This is triggered out of the US with the Fed acknowledging inflation confidence yesterday, but European markets are representing it most clearly (and that's one reason why EURUSD isn't lower)
Markets have reached an inflection point where higher levels of growth are now started to trigger concerns about accelerating CB paths
For the NFP ...
- A focus on wages for tomorrow (AHE)
i.e average hourly earnings, which is
- getting priced early
What UBS are referring to is that faster wage growth could trigger an even more aggressive Federal Reserve.
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The ball is rolling on NFP previews:
- 5 things to watch in the January nonfarm payroll report
- Goldman Sachs preview of Friday's US nonfarm payroll for January
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