The joy of watching financial markets all day long is that we get to experience firsthand market-moving risk events that are both a shock and sometimes, a puzzle. The latter’s answer will generally be revealed in time, and so it is a matter of figuring it out and trading it for a period of time, while the market zeroes in on the solution.
Arguably the single most-followed piece of economic data across markets is the US monthly jobs number, the non-farm payrolls report which is released on the first Friday of every month. It reveals both the health of the most important economy on the globe and also how the world’s premier central bank, the Federal Reserve might amend its policy measures in line with the report.
Yet the two most recent job reports have left many watchers scratching their heads, having been hopeful of bumper job gains as the recovery continues.
The April headline figure was revised higher to 278,000 jobs...read more...