While this week’s biggest events come towards the end of the week – ECB monetary policy decision, US jobs report and OPEC meeting – there are a number of economic releases due today that will be of interest, starting this morning with the final eurozone manufacturing PMI readings.
Nowadays many of us don’t what to make of the numbers or what to believe anymore. There certainly is a school of thought the market didn’t rally because they now believe the Fed will raise rates in December.
The dollar took a breather after surging to a seven-month high, while emerging, commodity and bond markets were jittery after strong U.S. jobs data boosted bets for a December rate hike by the U.S. Federal Reserve.
If December was a “live possibility” for a rate hike prior to the October jobs report, then today’s numbers may have just sealed the deal, after a staggering 271,000 jobs were added in the month and unemployment fell to 5%, the level that the Fed deems to be full employment. Ever since the October meeting, today’s jobs report was seen as one of two that could make or break the decision and based on the data, the decision suddenly looks pretty straight forward.