USD drops as a tepid May Payrolls report eases inflation fears further
May payrolls expanded, but not as much as anticipated. Click graphic, get report from BLS.
Here’s the graphical view of the current unemployment rate.
Typical of the US, which compared to many global areas does not like to get its hands dirty (with things like mining, manufacturing and you know, other non-essentials <<< sarcasm), Leisure & Hospitality is blowing everything else away. Ma & Pa along with friends and family are out spending all that MMT-born funny munny and the Good Ship Lollipop sails on (for now).
To boot, their formerly hyper concern about inflation is getting tamped back down just as we have been expecting from a macro perspective. Later on Ma & Pa will be seen jumping from the frying pan into the fire. But that’s a story for later. For now, just know that in order to inflate the Fed needs a less overtly inflationary situation to crop up.
Anyway, following L&H are not surprisingly Government & Services. Again, it’s the American way (and again it’s sarcasm).
And so the report mildly disappointed…
…which in this screwed up MMT (modern monetary theory) TMM (total market manipulation) managed market is good news! Hey, speculate on casino patrons, the economy’s not overheating and the Fed may be able to continue its inflationary operations, after all.
USD responds thusly, as it takes a sharp pullback from the first of many resistance levels after yesterday’s bounce. Uncle Buck knows that the resulting play will be more inflation eventually.
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