The FX market is pausing this afternoon while it digests the speech by the centrist Lockhart where he cheered the most recent employment numbers on Friday (+321,000) while expressing concern that inflation is stuck below 2%. Even with stellar employment numbers adding to the positive picture, Lockhart will continue to buy time and await supporting data (mid 2015 rate rise still expected).
Just in from the US Bureau of Labor Statistics is that total nonfarm payroll employment increased by 321,000 in November, and the unemployment rate was unchanged at 5.8 percent. Job gains were widespread, led by growth in professional and business services, retail trade, health care, and manufacturing. Revisions to the September and October data were a combined +44,000, bringing the 12-month prior average to 224,000. The November monthly increase is massively over the consensus of 238,000 and will continue to bring forward expectations of a US rate rise and add further gains to the US dollar.