UBS expects stronger-than-expected jobs in Friday's NFP, but jobs not the main 2024 story

<p>UBS are looking for stronger-than-expected jobs growth in Friday's nonfarm payroll report, due at 8.30 am US Eastern time:</p><p>More broadly UBS sees the main economic focus for the coming year as the ongoing slowdown in inflation rates, but point out that central banks can claim only a small part of the credit for bringing inflation down:</p><ul><li>Transitory durable goods inflation ended automatically</li><li>Energy inflation was more of a supply issue</li><li>Profit-led inflation is fading in the face of consumer rebellion</li><li>Higher rates slow inflation by slowing credit and raising unemployment. These effects have been very muted so far.</li></ul><p>UBS add that lower inflation will add to real wage growth, helping to create a "softish" economic landing.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.