John Eade, President of Argus Research, speaks on US rates scenario, nonfarm payrolls, the IPO and M&A scene and the USD.
Fed might hike rates by 25basis point this year
Eade believes the US Federal Reserve might lift rates by 25basis in 2015 and then continuing hiking rates slowly. This will be positive for US equities. A slow hike will be favoured by the markets, while a sudden rise in rates will shock the markets.
US NFP forecast at 230K
US nonfarm payrolls are expected to be strong and print a 230K number, according to Eade. He highlights the reasons for this forecast - weekly unemployment claims data and his conversations with CEP’s on hiring.
Eade further believes that the strong payrolls might be near a peak, and the next trend might be lower.
US Dollar gains might taper off in 2016
Eade sees the pickup in the Japanese economy and a possible Greece solution ahead to taper the USD’s rise versus Euro and Yen in 2016.