Flash: NFP likely to have transitory effect on markets – BBH

FXstreet.com (Córdoba) - The US government will publish today the nonfarm payrolls report for September, which was delayed by the federal shutdown. Expectations are building around a 180K gain versus 169K the previous month. However, BBH analysts note that despite the focus on the report, it may prove insufficient to awake the market from its slumber, beyond a knee-jerk reaction to the headline.

Key Quotes

"With the markets building up short dollar positions, an outsized move could be seen in the event of a very strong number, but again, this would most likely be transitory as markets would see little impact on Fed policy when two months of distorted jobs data are likely to be seen ahead".

"The data, as we have argued, is unlikely to change the investors or policymakers perception of the economy or of the timing of the tapering".