Week In FX Americas: December NFP Below Expectations
MarketPulse | Jan 10, 2014 01:53PM ET
The Department of Labor released the Non Farm Payroll report this morning and took the market by surprise. Estimates by economists polled by Reuters and Bloomberg were expecting a range between an increase of 150,000 to 250,000. The published number was 74,000, well below the estimates.
The bad weather hitting the US has been blamed for the slowdown in job creation. It comes at a bad time for the Federal Reserve as they started their tapering based on the previous months strong employment numbers.
December’s NFP is the lowest since 2011. The unemployment rate declined to 6.7 percent which is the lowest since 2008, but it has more to do with people leaving the workforce than a true recovery in employment.
The November employment numbers were revised upward by 38,000 jobs, so there is some expectation that December number was under reported. The reality will be that even with revision it will be below the market analysts expectations which also hints at the perceived versus the reality of the US economic recovery. This puts the Fed in a tough spot as the tapering program has been started. Bern Bernanke was wise to leave Yellen and Co. plenty of wiggle room on when to taper and even add to the stimulus package. They will need it.
Original Post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.