Concerns that the US recovery in losing steam are misplaced, in our view. However, with the weather having been just as severe in February, we might not see significantly stronger US data for still some weeks to come. Will markets look through more (weather-induced) data weakness?
Johnny Bo Jakobsen
Johnny Bo Jakobsen is Nordea Markets' Chief Analyst on the US. He is responsible for Nordea's view on the US economic outlook and Fed policy.
Johnny has been with Nordea for 15 years and during that time he has also covered Japan, the UK and Denmark. Prior to joining Nordea, Johnny worked at the Danish Ministry of Economic Affairs and he holds an M.Sc. (econ) from the University of Aarhus.
Central Bank meeting minutes from both UK and US are the main events next week. Moreover we will have price data from both US, UK and Sweden as well. Find our expectations for the upcoming week here.
As expected, Fed chairman Janet Yellen gave no new policy signals today in her first public remarks since becoming Fed chairman on 3 February. Thus she indicated that the Fed will likely push on with the taper.
Today’s jobs report was a mixed bag, but weaker-than-expected payrolls will likely add to the recent market concern that the US recovery might be coming off the rails. The details suggest that the weather was not the reason for the weak payrolls gain.
Next week we get GDP figures from the Euro zone where we hope to see a 0.3% q/q increase. The inflation report from UK will attract a lot of attention as the pound could use a positive report. From the US it is a quiet week with highlight being Fed Chairman Janet Yellen testifies to the House.
Yet again, a fresh battle over the federal debt ceiling is looming and the issue will likely grab the market’s attention, at least for a while.