U.S. Services Sector Remains Hot, Reaches a New High
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NZ Labour Market Review, June Quarter 2021
The unemployment rate fell to 4.0% in the June quarter, returning to its pre-Covid lows. The strong lift in employment indicates that a shortage of workers is not the main issue. Rather, demand for workers has been red-hot. Wage growth...
BoE Meeting: Neutral, With a Touch of Optimism
The Bank of England will announce its policy decision at 11:00 GMT Thursday. This is one of the big meetings, with updated economic forecasts and a press conference. The UK economy is humming along nicely, but the Delta outbreak and...
RBA Board Surprises by Maintaining Current Policy Settings
The RBA Board decided to maintain current policy settings despite forecasting a contraction in the September quarter. The rationale is that the experience points to the economy bouncing back quickly and that presumably a policy change may have undermined confidence...
RBA Could Put off Tapering Decision and Expose Aussie to More Declines
Four weeks ago, the Reserve Bank of Australia (RBA) claimed that the economy is in a good shape, and it would proceed with its bond tapering schedule as soon as September, despite the Covid uncertainty. On Tuesday, however, the Bank...
The US Economic Growth Exceeds Expectations
The new trading month started with the market participants focusing on Friday’s NFP report. Because the Federal Reserve of the United States has a dual mandate, one that focuses on both price stability and job creation, the way the labor...
Weekly Economic & Financial Commentary: “Progress” Has Been Made, But Is It Enough To Taper?
Summary United States: Demand Continuing to Outstrip Supply Although the headline rate of Q2 GDP came in softer than expectations, part of that was due to supply chain problems as businesses had to draw down inventories to meet demand, resulting...
Week Ahead: BOE, NFP, and FAAMG Oh My!
There were two main highlights from last week: The Federal Reserve meeting and earnings reports from some of the planet’s most valuable companies. As we noted in our Fed recap, the central bank hinted at progress toward its goals for...
The Weekly Bottom Line: The Economy Remains on Solid Footing
U.S. Highlights Thursday’s second quarter GDP report underwhelmed, but a solid foundation for future growth is developing. The pandemic continues to present supply chain challenges that are both driving prices higher and weighing on economic growth. Consumers are flush with...
Forward Guidance: July Canada and U.S. Labour Market Reports to Show Further Improvements
July’s employment reports are expected to show labour market conditions continued to improve in both Canada and the US. Similar to June, the hospitality sector will drive much of job gains in July as the economies continue to reopen. In...