Today’s US NFIB and JOLTS data key for wages outlook – BTMU

FXStreet (Barcelona) - Although today’s US NFIB small business optimism and the JOLTS report might not incite a significant market reaction, from a perspective of wages outlook, today’s data releases are key, explains Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ.

Key Quotes

“Today, we get data that tends not to illicit much market reaction but does provide valuable information on the labour market. The NFIB Small Business Optimism report and the JOLTS report are key in providing information on small business jobs activity and on turnover in the market. Small businesses provide the largest number of jobs to the US economy while the quit rate gives us an indication of the turnover in the market, which if increasing is a signal of rising wages to come.”

“Both reports are already signalling the probability of increased wage growth ahead and we expect further confirmation in today’s reports.”