Markets Pre-NFPs, Expectations & Thoughts 6/12/2013
Today’s key event is the US November nonfarm payrolls and speculative bets drive the markets. While the consensus leans towards 185’000 jobs added through November, markets currently price-in a positive surprise, somewhat similar to last month’s print above 200K. Indeed, Wednesday’s ADP employment data overbeat the market estimates (+215K vs. 170K exp. & 130K last). Should the NFPs overwhelm for the second consecutive month, the hawkish Fed expectations should jump back in the game.