Markets:<\/p>\n
Gold up $63 to $5086US 10-year yields up 3.3 bps to 4.18%WTI crude oil up 89-cents to $64.85S&P 500 flatJPY leads, EUR lags<\/p>\n
The super-strong non-farm payrolls report came as a big surprise. It was coupled with a drop in the unemployment rate and the initial market reaction was exactly what you would expect: Big USD bids. The euro fell to 1.1835 from 1.1900 in a straight line while USD\/JPY jumped a full cent.<\/p>\n
From there it splintered and part of that was skepticism that employment is actually re-accelerating. This jobs report came after five weaker employment numbers from various metrics. That’s tough to square but it also reflected another month of strong hiring in health and education.<\/p>\n
Whether it was skepticism or something else, the US dollar lost ground on a few fronts, particularly USD\/JPY which is undergoing a reset following the Japanese election. It fell to a low of 152.56 from as high as 154.60 — two full figures. The euro also rebounded close to 1.1900 and the Australian dollar rallied to a session high.<\/p>\n
It was mixed elsewhere as cable stayed under pressure and the loonie was bounced around by a separate story saying Trump had mulled leaving USMCA. That left the Canadian dollar near the bottom of the FX pile today even as oil climbed and the antipodeans outperformed.<\/p>\n
In equities, futures jumped on the NFP headline even as yields rose. However the optimism didn’t last as software stocks were hammered once again. There is a real flight out of US tech and I tend to think that’s keeping the dollar pinned, including on a day like today when it should have rallied strongly. The ‘old economy’ stocks continue to outperform as today saw Caterpillar up 4% and energy names broadly higher. <\/p>\n
I worry that this dead-cat bounce in equities harkens for more pain.<\/p>\n
Gold strengthened again today while silver rose to $84. Bitcoin fell 2% as it chops around $67K.<\/p>\n","protected":false},"excerpt":{"rendered":"Markets: Gold up $63 to $5086US 10-year yields up 3.3 bps to 4.18%WTI crude oil up 89-cents to…\n","protected":false},"author":2,"featured_media":474198,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-474197","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/474197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=474197"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/474197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/474198"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=474197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=474197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=474197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}