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Jobs Day | Euro PMI Data Signals Growth Concerns
Published February 1, 2019
The durability of US economic expansion will be highlighted by payrolls data at this morning. Market expectations are for 165,000 new positions to have been added in January and the unemployment rate to hold at 3.9%.
Euro-area inflation slowed to 1.4% in January, with core inflation unexpectedly rising to 1.1%. Italian bonds fell significantly after manufacturing PMI data this morning came in at 47.8, leading to further concerns about the economy. Growth in euro zone factory activity was negligible in January with new orders falling at the fastest rate in years.
The loonie has gained considerable traction in yesterday’s session, trading at a high of 1.3140. However, the loonie came under pressure following the release of Canadian GDP data, as Statistics Canada reported that GDP contracted by 0.1% on a monthly basis in November.
The US and China cited progress at trade talks in Washington yesterday, however fell short of announcing the advancement in negotiations. They have agreed to reinforce cooperation on technology transfers and intellectual property rights, additionally China said it would buy more US goods.