US Payrolls increased by 292,000 in December

Employers added 292,000 workers in December, a figure substantially stronger than the 200,000 that analysts had expected, while the unemployment rate remained at 5% as expected. Notwithstanding the fact that the strong figure reinforces the Fed’s case for raising rates in the months ahead, there was a muted response from the equity market, however the US dollar strengthened to 1.455 against Sterling, its strongest level for several years. Overall, the report reinforces the durability in the US labour market and strengthens the Fed’s anticipated schedule for a rate rise this year.