US NFP amongst market movers today – Danske Bank

Danske Bank analysts suggest that today's highlight is the US labour market report and are looking towards a 175K headline print.

Key Quotes

“Also we expect unchanged yearly wage growth of 3.1% with risks skewed towards a slight drop to 3.0%. While this overall is slightly stronger than consensus expectations we would expect but a modest positive market impact if this proves right. The key thing for markets is that the report shows a continued tightening of the labour market, i.e. that job growth stays above roughly 100,000. A very weak print, which in our view is not in the cards, would on the other hand trigger a risk off move.”

“In Canada we also get the monthly labour market report, which is very important given last month's disappointing reading, which fuelled rate cut speculations. Rates markets currently price in slightly less than a full rate cut from Bank of Canada in 2020 but this pricing is likely to be very sensitive to today's report as we approach the 22 January rate decision.”