US yields have also hit a 1 week high while stock markets burst up to fresh territory, sinking the yen to the lowest levels since March 20th. From this point on, following yesterday's mixed data out of the US, eyes are looking to jobs data.
Coming up this week, we have the nonfarm payrolls as the main event. "February’s very soft jobs report contributed to markets pricing in Fed rate cuts later this year, but we expect a much better set of figures for March which should help ease market fears about a slowdown," analysts at ING Bank explained.
However, a major question for investors is whether wage growth will accelerate further given the historically low unemployment rate and robust employment growth. Analysts at Standard Charted explained that, "notably, the wage growth trend has diverged from that of core inflation over the last two years (see Post-FOMC decline in breakevens – Cause for worry? and China PPI outlook – Moderate deflation in 2019)."
Coming up this week, we have the nonfarm payrolls as the main event. "February’s very soft jobs report contributed to markets pricing in Fed rate cuts later this year, but we expect a much better set of figures for March which should help ease market fears about a slowdown," analysts at ING Bank explained.
However, a major question for investors is whether wage growth will accelerate further given the historically low unemployment rate and robust employment growth. Analysts at Standard Charted explained that, "notably, the wage growth trend has diverged from that of core inflation over the last two years (see Post-FOMC decline in breakevens – Cause for worry? and China PPI outlook – Moderate deflation in 2019)."