Friday preview: US non-farm payrolls in foucs

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Sharecast News | 31 Mar, 2016

Updated : 17:31

The US non-farm report is in focus on Friday as the Federal Reserve takes into account the health of the labour market in determining the timing of another interest rate hike.

The US is expected to have added 210,000 jobs to the economy in March compared to 242,000 the previous month.

Average hourly earnings are forecast to have risen 0.2% in March following a 0.1% drop in February.

"While the headline number will get plenty of attention, the real focus is still on whether US wages can rise after a small decline last month," said IG senior market analyst Chris Beauchamp.

"Rising wages, and the positive impact this would have on inflation, is still the missing piece of the puzzle for the US recovery, and until pay does improve the economic recovery will still be built on loose monetary policy, rather than a really sustainable foundation."

The Fed said it is taking into account the labour market as it considers its policy decisions.

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