Headlines and Reaction: Employment
The economy pumped out far fewer jobs last month than most economists projections, coming in 1/2 of the median estimate of 213,000 at 110,000. As would be expected, stock index, currency and gold markets move rapidly on the news. As might not be expected, the direction price is likely to take today is far from certain.
YM – Dow 30 futures
`This will start to take the idea about 50 basis points (increases) out completely,’’ said Brian Edmonds, head of interest rates at Cantor Fitzgerald LP in New York, one of the two-largest bond brokers. ``Anyone thinking the Fed’s going to go 50 are now back to the `measured pace’ idea.’’1
Maybe. Probably.
Unsurprisingly the US Dollar did take a big hit initially, rebounded, and is now driving lower:
Perhaps surprsingly, Gold is also heading lower:
Moral of story: news events, especially big surprises, often end up pushing price in unexpected directions – the best plan is to sit back for a bit and let the smoke and noise clear….
1 U.S. Treasuries Gain as Economy Adds Fewer Jobs Than Forecast
05.04.01 09:30 #