⚡️Nonfarm Payroll Shows Strong Data, What’s Next?
Today, one of the most important reports on the U.S. labor market, Nonfarm Payroll, was released. The results significantly exceeded expectations. Interestingly, none of the TOP-10 largest investment banks in the U.S. came close to predicting the outcome.
The consensus forecast was 147K, but the actual number of new jobs in the non-agricultural sectors of the economy was 254K.
This is a substantial figure. The market will need to rethink its expectations of a rate cut by the Federal Reserve. A 0.5% reduction is now out of the question.
✔️The current market rally is largely irrational. Yes, investors may be pleased with the labor market's resilience and the fact that the economy is doing well. But when the Dollar Index rises by almost one percent in 15 minutes and the cryptocurrency market surges, it usually indicates a stop-loss hunt.
