US NFP preview: We estimate an increase by 170K - Danske Bank

Next week, many relevant economic reports will be released in the US, among them, the most important will the official employment data. Analysts from Danske Bank, estimate non-farm payrolls increased by 170K, in line with market consensus. 

Key Quotes: 

“The October report was strong with declines in both the unemployment and underemployment rates to 4.9% and 9.5%, respectively (from 5.0% and 9.7%) and acceleration of wage growth to 2.8% y/y (from 2.7% y/y). In our view, this is sufficient ‘further evidence’ for the FOMC to raise rates in December, which is now also fully priced in by markets.”

“In November, we estimate non-farm payrolls increased by 170,000 in line with recent trends and estimate an unchanged unemployment rate at 4.9%. We expect average hourly earnings increased 0.2% m/m implying an unchanged wage growth rate of 2.8% y/y.”