Who is surprised that Payrolls rebounded last month? I am not because this is a notoriously volatile economic data point and one bad month (May) does not a trend make. You can click the blurb for the full report from the BLS.
Here is the monthly breakdown with the notables joining the usual hefty Services readings being Manufacturing and Government. Construction may have kicked in due to the bond bubble getting a new life and associated decline in yields. Transportation? I don’t know. But it popped too.
MarketWatch says that…
Fed-sensitive 2-year Treasury yield surges after solid jobs report
A little moment to take pause for the Fed Rate Cut Hype Train?
And that is where things get interesting. You see, we are in a global competition to compromise the currency in service to trade balance and stock market appreciation. Uncle Buck took that memo and used it is wipe his ample posterior. But USD is at the SMA 50, which has just begun to hint at turning down (in other words, an uptrend is intact after it did not violate its March low).
The green dot shows where it has bounced to this morning. It would be best for the anti-USD trades for it not to make a higher high to that June high.
As for other markets, US stocks are not pleased, but could use a bit of a cool down and gold needed a good pullback, as even the rational bugs have gotten a little too frisky lately. I’ll probably take a hit today but I took a short on the junior gold miners (JDST) earlier this week and on Treasury bonds (TBT) last week, so those could do okay as we sort out what comes next.
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