nfp - employment change just came in at 74k, much lower than expected and its lowest printing since June 2012.
Despite that, the official unemployment rate dropped to 6.7% - it was expected to hold at 7%.
The immediate reaction is negative USD due to the low nfp number but when the dust settles I think that drop to 6.7% will start to weigh on monetary policy. The fed has consistently stated that the tapering of QE will depend on this figure above all else, so this makes continued tapering much more likely at the next FOMC meeting.
Next week US inflation figures come out on Thursday, Fisher and Plosser both speak - both are hawks, so their reaction to 6.7% unemployment will be very interesting. Bernanke also speaks late in the week.
Despite that, the official unemployment rate dropped to 6.7% - it was expected to hold at 7%.
The immediate reaction is negative USD due to the low nfp number but when the dust settles I think that drop to 6.7% will start to weigh on monetary policy. The fed has consistently stated that the tapering of QE will depend on this figure above all else, so this makes continued tapering much more likely at the next FOMC meeting.
Next week US inflation figures come out on Thursday, Fisher and Plosser both speak - both are hawks, so their reaction to 6.7% unemployment will be very interesting. Bernanke also speaks late in the week.
si hoc legere scis nimium eruditionis habes