US non farm payrolls data disappoint at 169,000

Business

oi-Sunil

By Sunil Fernandes

Published: Saturday, September 7, 2013, 9:52 [IST]

US non farm payrolls data for August painted a grim picture with the figure coming in at 169,000, against analysts expectations of around 180,000.

The lower then expected figure now raises the predicament of the Federal Reserve on tapering its asset purchase programme or QE3, when the FOMC meets on Sept 18-19.

The US non farm payroll data was one of the last important data points that the Federal Reserve would take into account before it decides on QE3 tapering.

The Federal Reserve has been infusing $85 billion into the US economy by way of its asset purchase programme, to boost the US economy. A lot of this money has found its way into stock markets and gold, which have boosted their prices.

A systematic withdrawal of QE3 is likely to see an impact on gold, stock markets and currencies, particularly emerging market currencies with high current account deficits.

GoodReturns.in