Barclays: US NFP to confirm QE tapering
Strategists at Barclays expect the nonfarm payrolls (NFP) to come at 175K in August (forecast: 177K, prior: 162K). Unemployment rate is expected to stay at 7.4%.
"Job growth of this magnitude is consistent with our view of a tapering of asset purchases at the September 18 FOMC meeting," Barclays says.
"As a result, we would expect strong US economic data in the run-up to the meeting to help price it in. The labor market data this week are crucial in this respect. A further move toward tapering will likely keep the broader asset market trends of higher rates; weaker risk appetite (especially in EM); and higher USD," they add.