While the US economy is looking increasingly robust, recoveries do not happen in a straight line and the economy is likely to lower its growth rate in the...

While the US economy is looking increasingly robust, recoveries do not happen in a straight line and the economy is likely to lower its growth rate in the September quarter to around +2.6% q/q. In light of this, the non-farm payrolls for August were not surprising, nor worrying. However, the August result has had two immediate effects: firstly it has reduced the impulse of market bulls to push for a higher US Fed Funds rate in late 2014 or early 2015, with trends suggesting the end of zero interest rate policy is still likely in the middle of next year. Secondly, it has (at least temporarily) stopped the depreciation of the Euro. Full report covering developments over the weekend is available here: (VIEW LINK)