FOMC will be cautious in reading too much into the magnitude of January’s NFP – Wells Fargo
The data published on Friday by the US Bureau of Labor Statistics (BLS) showed that Nonfarm Payrolls rose by 517K in January, well above market consensus. The numbers triggered a rally of the US dollar. Analysts at Wells Fargo point out that there is still plenty of additional economic data between now and the March […]
Despite the rebound, the breadth of services expansion has still slowed – Wells Fargo
The ISM Service PMI released on Friday showed the index rose back above 50, into expansion territory. Analysts at Wells Fargo, point out that after just a single month under 50, the services ISM shot back up into expansion. However, they warn the breadth of services expansion has still slowed. Key quotes: “The slowdown in […]
End to rate hikes will coincide with an end to USD gains during early 2023 – Wells Fargo
In the view of economists at Wells Fargo, end to monetary tightening should bring the US Dollar’s gains to an end by early 2023. Eventual US recession to soften the greenback “An end to rate hikes will coincide with an end to USD gains during early 2023. Indeed, we believe a peak in the trade-weighted […]
Consumer Confidence rises in January buy it may not translate into a spending surge – Wells Fargo
Data released on Friday showed a significant increase in Consumer Confidence in January according to the preliminary report from the University of Michigan. Analysts at Wells Fargo point out the 64.6 reading for consumer sentiment in January marks the top print in the past year. The see that the relief on the inflation front and […]
Recession is coming but the ISM does not mark the start of it – Wells Fargo
The ISM Service PMI for December released on Friday came in below expectations and triggered fears about a hard landing of the economy. Analysts at Wells Fargo forecast a recession is coming but they point out that this report does not market the start of it. Key quotes: “One unsettling takeaway from today’s services ISM […]
The case for additional labor market weakness is clear – Wells Fargo
On Friday, the US official employment report will be released. Market consensus is for an increase in payroll by 200K. Analysts at Wells Fargo point out the demand for workers has started to roll over. They argue job openings and hiring plans have declined since the start of 2022, and the trend in layoffs is […]