All was right with the markets as the unemployment data was released and for one of the few times in recent memory, the Wall Street analysts, ADP and others were right on target. Private sector job growth continued to improve, and the state and local governments were continuing layoffs to try to balance its budgets. The softest part of the employment data was the average hourly earnings, which were FLAT. This implies that employers are under no stress to lift wages with the unemployment rate at 8.8 percent. The markets took the data in stride as the DOLLAR was rallying on the positive data. With the previous day’s comments from various FED presidents, there appeared some need to lift some of the SHORT DOLLAR positions. The short-end of the yield curve was under pressure, aiding the DOLLAR RALLY and the selloff in the precious METALS. The equities seemed to be basking in the perfect storm for no WAGE GAINS, a mere threat of 1 percent FED FUNDS with an improving JOBS PICTURE doesn’t get any better for the EQUITIES.
Posts Tagged ‘treasury securities’
Notes From Underground: Bill Dudley refills the PUNCHBOWL (or why New York bankers shouldn’t Head the NY FED)
April 3, 2011Tags:ADP, Bernanke, Bill Dudley, credibility, currencies, Dollar, dollar rally, dollar standard, doves, Equities, euro debt problem, Fed, flat, Gold, hawks, MBS, metals, PIIGS solvency, portfolio balance channel, QE, QE2, short dollar positions, sovereign debt issues, treasury securities, u.s. dollar haven status, unemployment, Volcker, wealth effect
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