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Ahead of Friday’s print – which is expected to see 230,000 jobs added in November, compared to the previous level of 214,000 month-on-month, as well as an expected move higher in US average hourly earnings of 0.2% – both the US 500 and US dollar are coming off year-to-date highs. Is the trend your friend, or has the steam finally run out of the rally?
The non-farm payroll number may well be losing its impact on the markets as a measure of economic health in the US, following Janet Yellen’s previous desire to use unemployment, expected to remain steady at 5.8%, as a benchmark of slack in the economy, and thus time a possible rate hike.