US ECI to show a pickup in wage growth

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The US Employment Cost Index is expected to register a 0.6% sequential increase in the first quarter. This is in line with the gain reported in Q4 and appears benign on the surface; however, it will push the yoy growth rate from 2.3% to 2.6%, the strongest pace since 2008.

The acceleration should be even more pronounced in the ECI wage & salary component for private sector workers which is expected to show a 0.7% sequential increase and a 2.8% yoy growth rate. This would be the first tangible sign of a pickup in wage growth.

While a pickup in wage growth is not a pre-condition for a rate hike by the Fed, it could nonetheless cause the market to reassess the likely timeframe.

(Source: http://fxwire.pro/US-ECI-to-show-a-pickup-in-wage-growth-29379)

[Bitcoiner2015]

The fed isn't raising rates, not in 2015 anyway, if ever.

[NUFCrichard]

The fed isn't raising rates, not in 2015 anyway, if ever.

I have to agree with that, I don't see the entire world lowering rates to zero or below zero, whilst America raises rates!  The strength of the dollar would increase even more, beyond parity, destroying their exports.

It hurts the rest of the world too as things like gold and oil are priced in USD, so if it stays the same price, then they relatively go up in value in other currencies...

[aso118]

The fed isn't raising rates, not in 2015 anyway, if ever.

I have to agree with that, I don't see the entire world lowering rates to zero or below zero, whilst America raises rates!  The strength of the dollar would increase even more, beyond parity, destroying their exports.

It hurts the rest of the world too as things like gold and oil are priced in USD, so if it stays the same price, then they relatively go up in value in other currencies...

Yup. The reasons being given for maintaining low interest rates for a little bit longer are
- punishing winter and trade disruption at western ports
- rally in the dollar which is restraining inflation and US exports
- Wages and inflation are still not rising significantly

It will be interesting to see how the meeting of central banks goes and whether there are any key announcements