20 Jan 2016
UK labour market report and US inflation in the limelight today – Danske Bank
FXStreet (Delhi) – Research Team at Danske Bank, suggests that the UK labour market report and the US CPI inflation will be the key data releases for the day.
Key Quotes
“In the US, focus is on CPI inflation. While PCE core inflation (the Fed's target measure) is subdued significantly below the 2% target, CPI core inflation was 2.0% y/y in November. We estimate that CPI core inflation increased to 2.1% y/y in December.
In the UK, the labour market report for November 2015 is due. Wage growth as measured by the annual growth rate in average weekly earnings excluding bonuses (3M average) has been weak in the recent reports and the coming report should not be any different. We estimate wage growth declined from 2.0% in October to 1.8% in November. We expect the unemployment rate (3M average) to be unchanged at 5.2%.”
Key Quotes
“In the US, focus is on CPI inflation. While PCE core inflation (the Fed's target measure) is subdued significantly below the 2% target, CPI core inflation was 2.0% y/y in November. We estimate that CPI core inflation increased to 2.1% y/y in December.
In the UK, the labour market report for November 2015 is due. Wage growth as measured by the annual growth rate in average weekly earnings excluding bonuses (3M average) has been weak in the recent reports and the coming report should not be any different. We estimate wage growth declined from 2.0% in October to 1.8% in November. We expect the unemployment rate (3M average) to be unchanged at 5.2%.”