#OPINIONLEADER# #FOMC#

ByLCMS Traders FX Analysis Team

 JAN 10, 2022

(1) The OPEC+ expressed optimism during their meeting last week, making no change to its oil production hike of 400,000 barrels-per-day for the month of February. Furthermore, the organization also downplayed the Omicron variant, saying that “the impact of the new Omicron variant is expected to be mild and short-lived, as the world becomes better equipped to manage COVID-19 and its related challenges.”

(2) In the released meeting minutes, the FOMC highlighted that its committee members carried out discussions on the unloading of bonds held under its quantitative easing (QE) programme. Majority of the members felt that it is appropriate to start unloading bonds after the first interest rate hike takes place. Additionally, many members also felt that the pace of unloading bonds will likely be faster than previously carried out back in 2017.

(3) The U.S. Bureau of Labor Statistics (BLS) released a rather mixed jobs report last Friday. A way lower-than-expected 199,000 jobs were added into the economy last December as opposed to the forecast of 426,000 jobs. Nonetheless, employment figures for last November and October were revised upwards by 39,000 and 102,000, totalling 141,000 jobs. Also, unemployment rate has hit a new pandemic low of 3.9% but there was no change in the participation rate, which stayed at 61.9%. Lastly, average hourly earnings rose by 0.6%, higher than the expected 0.4%.