Unemployment Numbers, Dane Sikhoff | New US numbers – bad news for the krone

Unemployment Numbers, Dane Sikhoff |  New US numbers – bad news for the krone

On Friday at 2:30 p.m., we received an answer on how many new non-farm jobs were created in the United States in December, or so-called “non-farm payrolls.”

According to Trading Economics, an additional 216,000 people entered the labor force, versus the expected 175,000.

As a result, an additional 2.7 million people were employed last year.

The unemployment rate remained unchanged at 3.7 percent, according to NTB.

Impact on Crohn's?

At 11 a.m. on Friday, one euro cost NOK 11.27 and one dollar cost NOK 10.33. At 2:30 pm, one euro costs 11.31 and one dollar costs 10.36.

The Norwegian Krone weakened immediately after the news. One euro now costs $11.35 and one dollar now costs $10.41.

Since the Norwegian Bank's interest rate meeting on December 14, the value of the krone has been steadily rising.

– Bad news for the krone

– The krone has weakened against the dollar by five cents since the news broke, Nordea Markets analyst Dane Sikov tells Netafsen.

– The Norwegian Krone is likely to continue to weaken over the next few days.

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– How surprised are you?

“A bit surprised,” he answers, “although the US economy has been doing well lately.”

The strategist adds: “This is bad news for everyone who goes out and travels.”

– Inflation numbers are decided

Sikoff believes the numbers speak to the absence of an imminent US interest rate cut, but next week's inflation numbers will be crucial:

– In the short picture, this is bad news for the krone – it will be very interesting with inflation numbers coming out this week, says Sikov.

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Statistics Norway (SSB) will release inflation figures on Wednesday.

“The most important numbers in the world”

DNB Markets expected an increase of 200,000, According to their morning report.

According to chief economist Kjersti Hoogland, it's about “the world's most important key figures”:

“Given the calm of market players, the numbers have great potential to make significant impacts on the market today. If employment growth is as we think it is (200K increase), or stronger, interest rate rises could accelerate further.

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But if the opposite happens:

“A lower-than-consensus result (174,000), on the other hand, could see interest rates slide lower. Unemployment, which surprisingly fell by a twentieth in November, is also expected to rise again by a tenth to 3.8 percent.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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