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North America Weekly

U.S. March Employment—Spring Bites After a Mellow Winter

After February's strong employment report, we remained cautious, noting that the report “would appear to reduce the odds on QE3,” but retained our views on QE3 for the time being on the concern that “the labor market is a lagging indicator of activity, and that it reflects the healing of sentiment and pickup in activity in the later part of Q4, after heightened uncertainty in late Q3 and early Q4.” The March employment report indeed shows that such caution was warranted.

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