The US dollar trades lower a disappointing non-farm payrolls data for January as only 113K jobs were added, according to the Labor Department. Economic forecasts were aiming for 184K, 71K jobs higher than today’s initial release. November’s 74K non-farm payrolls was revised to 75K.
Equities initially dipped, but came roaring back as the excuses come out of the woodwork. Weather could not be the scapegoat for this month’s data, so analysts now say it is not stellar, but it is not too bad. “It’s another disappointment, but it’s not anything disastrous,
” said Julia Coronado, chief economist for North America at BNP Paribas. Unfortunately, years of mediocre labor market data is disastrous considering the amount of stimulus the government spend in order to improve the labor market. (Inset next does of hopium).
Retail and department stores were among the top leaning out their workforce after the holiday season, and Macy’s announced it would cut 2,500 jobs and close five stores. Troubled retailer, JC Penny Co. looks too cut 2,000 jobs and 33 stores.
The unemployment rate continues to declined in the stagnant labor force market, dropping to 6.6 percent.
The US dollar dropping violently on the 1H chart prior to the non-farms payrolls data, but it continues to be weak. As growth concerns continue to worry, the dollar has been shaky. A Fibonacci retracement of the 20-day high and low show that price action is pressuring the 50 percent retracement to the downside. Precious metals have remained elevated at the dollar’s expense. Look for price action to break through the 50 percent level, 80.87, and target 80.71.