Is the US Labor market finally starting to turn?
It is a big week for US jobs data this week.
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Read moreIt is a big week for US jobs data this week.
The latest US PCE price index, released on Friday, followed a familiar pattern among recent global inflation updates. Annual headline inflation dipped to 5% (from 5.3%).
Ongoing dollar weakness has continued without disruption throughout this week. The dollar index is now around 0.7% lower.
While markets may be watching for risks approaching the banking sector in the rearview mirror, this week also continues with fresh attempts to look forward
Ultimately, the Fed delivered broadly in line with market expectations yesterday afternoon, raising US rates by 25bps to a target range of 4.75 – 5%.
A resilient consumer and a healthy labor market aided growth in the final two quarters, providing hope for 2023.
The United States economy grew much faster than previously estimated in the third quarter, indicating that the Federal Reserve's campaign to tame the economy to combat inflation is having only a limited impact.
The United States Gross Domestic Product (GDP) has fallen for the last two quarters, leading many to believe that the world's biggest economy is in recession.
The U.S. economy began the second half of 2022 on a more solid basis than anticipated. The second-quarter economic output decline was less severe than expected, owing to higher consumer spending, private investment, and a tight labor market.
The United States economy began the second quarter on shakier ground than previously thought. Read more about the July FX Consensus Forecast here.