May 08 2015

Rate Range Projection by Bank

 Next week 119.00- 121.00 

Next 3 months 115.00 - 125.00

 

As the, U.S. job growth rebounded last month and the unemployment rate dropped to a near seven-year low of 5.4 percent, suggesting underlying strength in the economy. Nonfarm payrolls increased 223,000 as gains in services sector and construction jobs offset weakness in mining, the Labor Department said on Friday. The one-tenth of a percentage point decline in the unemployment rate to its lowest level since May 2008 came even as more people piled into the labor market.

 

However, wage growth was tepid and March payrolls were revised downward, leading financial markets to push back rate hike bets. Second quarter that could keep alive prospects for a Federal Reserve rate hike later this year. Chief U.S. economist at Barclays in New York, said , "We see this report as reducing concerns that weak first-quarter growth represents a loss of economic momentum," the bounce back was not strong enough to think the Fed could bump rates higher before September. said Michael Gapen. March payrolls were revised to show only 85,000 jobs created, the fewest since June 2012. That resulted in 39,000 fewer jobs added in February and March than previously reported, underscoring the weakness in activity at the start of the year. The dollar rose marginally against a basket of currencies. Employment growth averaged 257,000 per month in the 12 months prior to April.