US non farm payroll employment numbers do not disappoint

Last week was another positive week for the US Dollar and US Stock Market’s after the initial disappointment of the Sequester not being prevented on Monday.US non farm payroll employment numbers do not disappointHowever, the Non-Farm Payroll figure did not disappoint with speculation rife that the figure was expected to come in above consensus and the final figure coming in at 236,000 new jobs versus consensus of 135,000 for February.

This led the US Dollar on a bull run against most major currencies with GBP/USD falling to 1.4884 for the first time in over 2 1/2 years with EUR/USD remaining relatively unchanged in comparison dropping to 1.2955.

Also on Friday, credit rating agency Fitch downgraded Italy to BBB+ or just 4 notches away from a junk rating.

Even with George Osborne’s Budget just around the corner the FTSE 100 closed at a five year high on Friday as the world’s stock market’s continue to gain confidence.

Next week’s statement from the Chancellor is expected to outline ways to increase growth as the current austerity first approach continues to falter.

This week will be quite datawise with the trade balance figure expected to rise to a 9 billion deficit on Tuesday whilst industrial production and manufacturing expected to struggle to add any growth MoM.

In the US of A Wednesday’s retail sales figure are expected to rise to 0.5% from 0.1% and Thursday’s jobless claims are expected to show a small rise, ending the week with CPI data expected to rise to 1.9% from 1.6%.

Also on Friday, Michigan Consumer Sentiment is expected to have risen again in a sign the US economy is back on track while as the Fed’s stimulus measures continue to bolster confidence.

In China – over the weekend China released data showing the domestic environment is struggling to keep up with expectations as retail sales figures came in at 12.3%, well below the 15% growth figure and also CPI increased more then expected to 3.2% from 2% last year to reach a 10 month high.

With exports seemingly back on their feet again the Republic may have to raise interest rates to ease the pressure on domestic consumers and prevent the economy from overheating.

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