THE WEEKLY BOTTOM LINE
TD Economics
United States
- Markets adopted a risk-off bias earlier on in the week, fixated on the outcome of the much anticipated “Super Thursday” Bank of England(BoE) announcement in the UK.
- The BoE did not disappoint, delivering a big stimulus package that included a cut to the key policy rate, as well as several stimulus measures amounting to a combined total of £170 Billion.
- Strong data stateside continued to support our view of resilient domestic strength. Non farm payrolls took center stage at the end of the week adding 255K jobs in July. The resilience of the labor market provides a strong case for a data dependent FED to move earlier than financial markets are currently pricing.