November non-farm payrolls highlights:
- Prior reading was 204K (revised to 200K)
- Two month net revision +8K
- Private payrolls 196K vs 180K expected
- Unemployment rate 7.0% vs 7.2% expected
- Prior unemployment 7.3%
- Participation rate 63.0% vs 62.8% prior
- Average weekly hours 34.5 vs 34.5 prior
- Underemployment rate 13.2% vs 13.8% prior
Oh snap, the big drop in unemployment, along with rising participation puts a December taper squarely on the table. The US dollar is roaring with USD/JPY blasting to 102.75, breaking the recent highs.
US unemployment rate
Quick take: It’s tough to find a reason to be skeptical, all minor components are excellent. The worst thing you can say is that it’s ‘only one month’. As big as the knee-jerk has been, the dollar and gold moves could last.
