US data – NFP

Last week was a bit of a mixed bag when it comes to employment numbers in the US. NFP broadly in line with expectations and trend. Unemployment fell to a level below the Fed target and all sounds rosy. However the fall in unemployment was mainly due to a fall in the participation rate which of course is not so positive. However all in all the prints were OK and should not dampen the Feds spirits to give us all a very merry Christmas hike. In fact markets are now pricing in 3 or 4 rate increases to come b4 end 2018 so again we will have the questions in 2017 of whether the next meeting will bring a hike or not. This for us is fun of course as brings plenty of opportunities for trading. As the Bureau of Labour Stats graphs show toto is a long way from 2010



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