There is little on the domestic front to move markets today as traders wait for Friday’s jobs report.
The jobs data will take on more significance this month than in recent months because of Ben Bernanke’s testimony to Congress last week.
The Fed Chief spoke more strongly about inflation that we’ve heard from him in a long while.
That’s partly in response to market reaction to the Fed’s press release last week.
When the Fed softened it’s language on inflation, markets interpreted that to mean that the Fed planning to lower the Fed Funds Rate sometime soon in 2007. Bernanke needed to set the record straight (and he did).
With an eye on labor markets, Friday’s release takes on added importance and mortgage rates may move wildly as early as Thursday afternoon as traders place their bets.
Expectations are for 120,000 new jobs created in March.