U.S. Session Recap – February 7, 2014

  • Canadian Ivey PMI stronger than expected at 56.8, up from 46.3
  • U.S. preliminary labor costs and non-farm productivity below consensus
  • RBA upgrades growth and inflation forecasts, predicts higher unemployment

The fireworks didn’t end after the BOE and ECB interest rate decisions! The Canadian dollar took center stage during the release of the Ivey PMI, which climbed from the previous month’s 46.3 reading back above to the expansionary zone and printed a stronger than expected 56.8 figure. However, its gains were limited by weaker than expected medium-tier employment data from the United States. Preliminary labor costs declined by 1.6% for the previous quarter while non-farm productivity stood at 3.2%.

Earlier today, the RBA released the text of its monetary policy statement and showed that the central bank upgraded its growth and inflation forecasts. GDP growth is projected to be at 2.75% by the middle of 2014 and could rise to 3.25% at the end of the year. As in their previous rate statements, policymakers confirmed that the effects of their recent easing efforts are starting to kick in.

No other major reports are lined up for the rest of today’s Asian trading session, with only the Japanese leading indicators report up for release. With that, make sure you keep tabs on market sentiment and potential pricing in ahead of today’s NFP release.

See also:

London Session Recap

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