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US jobs data "to kick off tapering"
The US jobs data, which is seen as a barometer of recovery, will set the scene for the Federal Reserve when it meets and makes that all important decision on tapering. Saxo Bank’s Nick Beecroft, believes the figures will be positive, and that there is a 70% chance the Fed will start to wind down its stimulus programme.
Nick expects the non-farm payroll data to rise by about 190,000-200,000, and unemployment rate to drop by 0.1 percent.
If the US economy improves, Ben Bernanke has said he will start reducing the Fed's USD 85 billion monthly bond-buying programme. An announcement is expected to take place at its September 17-18 meeting.
But it's not just the non-farms keeping the markets busy; the ECB and the BoE have held their policy meetings and decided to keep rates at record lows, whilst over in Asia, the Bank of Japan decided to maintain its stimulus programme.
Nick says the major central banks are currently having trouble meeting market expectations, when it comes to keeping rates at record lows.
01:09 minutes
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