On Wednesday, ADP employment figures for January warrant investor interest ahead of the Fed interest rate decision. The US labor market remains a focal point for the Fed. Tight labor market conditions support wage growth and disposable income. Upward disposable income trends fuel consumer spending and demand-driven inflation.
However, the Fed interest rate decision, Rate Statement, and Press Conference will be the main event. Economists expect the Fed to leave interest rates at 5.50%, putting the focus on the Rate Statement and Press Conference.
On Thursday, US jobless claims, nonfarm productivity, and unit labor costs need consideration. Softer labor market conditions could influence bets on a March Fed rate cut. Other stats include ISM Manufacturing PMI numbers. However, barring a slump in manufacturing sector activity, the numbers will likely play second fiddle to the labor market data.
On Friday, the US Jobs Report will wrap up a busy week for the US dollar….
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