US: Stronger than expected economic releases - BBH

The US has reported a string of stronger than expected economic data, including yesterday 216k increase in the ADP employment estimate as noted by the Research Team at BBH. 

Key Quotes

“US interest rate premium is historically wide and getting wider.  Europe has two political risk events this weekend with the Austrian presidential election and the Italian referendum on tap, before the ECB meeting next week which is expected to 1) extend QE, 2) tweak the rules to minimize scarcity of securities, and 3) enhance the securities lending to ease pressure in the repo market.  The dollar is not making a move upside headway, though it did reach an eight-month high against the yen in Asia before pulling back in Europe.”  

“The absence of further dollar gains despite the fundamental backdrop is making short-term operators more cautious after having ridden the greenback's three-week advance to the bank. Many have given up on the idea that tomorrow's US jobs data will succeed in ending the broad consolidative phase that began last week.”