Market Scheming

Friday, January 7, 2011

Strange action in all markets post non-Farm payrolls

The non - farm payroll came out at 8:30 today. 
Here is the highlights from Bloomberg.
Released on 1/7/2011 8:30:00 AM For Dec, 2010

PriorPrior RevisedConsensusConsensus RangeActual
Nonfarm Payrolls - M/M change39,000 71,000 160,000 98,000  to 225,000 103,000 
Private Payrolls - M/M change50,000 79,000 180,000 108,000  to 235,000 113,000 
Unemployment Rate - Level9.8 %
9.7 %9.6 % to 9.8 %9.4 %
Average Hourly Earnings - M/M change0.0 %
0.1 %0.1 % to 0.2 %0.1 %
Av Workweek - All Employees34.3 hrs
34.3 hrs34.3 hrs to 34.4 hrs34.3 hrs


An extremely strange drop in the unemployment rate, from 9.8% to 9.4%, while the number of jobs miss expectations by over 50%.

For a critical look at these numbers refer to the following Zerohedge article.


Since I covered AUDJPY yesterday I thought I would show an update of this chart.  At 8:30, a 60 pip move in less than 1 minute occurred (mini flash crash?).  It appears that the market is following the crash lower along with the stock markets, and the EURUSD pair which is below.


Note the increase volatility when the non-farm payroll was announced at 8:30 am.

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