The US economic calendar is light today with the only highlights coming from initial jobless claims at the bottom of the hour and a 30-year bond auction at 1 pm ET.
Yesterday’s FOMC minutes highlighted the critical dynamic on interest rates.
“If labor market conditions or economic activity were to weaken
materially, or if inflation were to continue to come down and inflation
expectations remained well anchored, then it would be appropriate to
establish a less restrictive stance of monetary policy than would
otherwise be the case,” the Minutes say.
The claims data would have to start rising for any ‘material’ worsening of the jobs picture and likely well beyond 250K to get the Fed’s attention — perhaps 300K.
This article was written by Adam Button at www.forexlive.com.