Happy Friday.
Futures are upbeat on the comments from China about trade but I find the comments from Japan to be the story today, as the US appears to be set on leaving the majority of tariffs on permanently, including the 10% floor.
In any case, the market can turn away from tariffs for a few minutes and focus on the domestic economy.
Here is a chart from Anna Wong highlighting the seasonal trend in leisure and hospitality hiring. Those are two industries that are likely to struggle in the months ahead, along with transport and construction.
The thinking is that if today’s report is strong, it will delay the inevitable pain from this later while if it’s weak, then there was softness even ahead of this. I’m not sure I agree but that’s the sentiment that’s out there.
This article was written by Adam Button at www.forexlive.com.
