MORNING BRIEFING: Disappointing Non-farm payrolls from US; Fed policy unlikely to be swayed.

What’s new:
United States: Non-Farm Payrolls disappoint showing 85’000 jobs shed.
United States: Unemployment rate at 10%.
United States: Fed’s Bullard says Fed policy unlikely to be swayed by jobs data.
Euro zone: Moody’s says Portugal’s rating is threatened.
China: Overtakes Germany as top exporter in 2009.

Today:


Overnight Rates and Indices:
EURUSD: 1.4533 – 1.4408.
USDCHF: 1.0312 – 1.0133.
GBPUSD: 1.6138 – 1.6048.
EURJPY: 134.14 – 133.33.
USDJPY: 92.63 – 92.18.
DowJones: 10’618.19 +0.31%
NASDAQ: 2’317.17 +0.70%
S&P 500: 1’144.98 +0.40%
Nikkei: 10’798.32 +1.09%.
Shanghai: 3’212.75 +0.52%,
Gold: $1’152.9 +1.29%
Crude Oil: $83.51 +0.92%
 
Comments:

The December number for Non-farm payrolls came in worse than expected, disappointing investors who were hoping for a rise after 2 years of job losses. However the latest payrolls data shows continued fading of weakness.

Comments from Fed officials overnight did little to aid the dollar. St. Louis Fed President said that Fed policy was unlikely to be changed by December’s surprising job loss data. Speaking from China, Bullard added that G7 rates were expected to remain low for some time while liquidity programs are not an inflationary concern. Boston Fed President said that he does not see near-term inflationary pressure and said it was more appropriate to keep rates low. Fed’s Lacker said there may be increasing inflation risk during the recovery however he warned that the economy could disappoint for some time.

Have a nice day.

Emman Xuereb
Trading Desk
RTFX Ltd.
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