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JOLTS strengthen USD - BTMU

FXStreet (Barcelona) - Derek Halpenny, European Head of Global Market Research at BTMU sees the recent strength in USD being fuelled by the ongoing solid data from the US and the JOLTS report showing an increase in key elements which drive wages higher.

Key Quotes

“There are many aspects to the JOLTS report but overall the details of the September report were positive. The job opening figure of 4.735mn was down on the high set in August of 4.853mn but the September figure is still above the peak recorded in the last cycle of 4.657mn set in March 2007. The August/September figures are the highest since the record was set in January 2001.”

“Furthermore, while job openings may have fallen, the level of hiring as a percentage of total employment jumped to 3.6%, the highest level since December 2007. The quit rate also jumped to 2.0% - the highest level since May 2008.”

“So a key element of employment that helps drive wages higher – labour market turnover – is on the rise and this adds to our view that come the middle of next year, the average earnings annual growth rate will be at around 3.0% rather than the current 2.0%.”

“Better wage growth will of course help consumption next year. For this year we should soon be seeing the benefits of falling gasoline prices and the retail sales report today may well indicate this near-term benefit for the US consumer that will help ensure continue cyclical support for the US

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