JOBLESSNESS SUCKS

Today’s unemployment report hitting another new high is dollar bullish!

U.S. employers cut a larger-than-expected 263,000 jobs in September; pushing the official unemployment rate to 9.8%.  Today’s print represents a 10 basis point increase from the previous peak, but a deceleration versus the 30 basis point jump last month.  In the rear view mirror, the improvement in August now appears to have been a statistical blip.   

Today’s unemployment rate (in terms of its growth) is, on the margin, US dollar bullish and bearish for equities in turn.     

Since the start of the recession, the number of unemployed people has soared by 7.6 million to 15.1 million in total.  While the worst of the labor market deterioration may be over, the trajectory of job losses is still positive. 

The “jobless recovery” now appears to be firmly entrenched, as corporate America appears unconvinced that the economy is truly on a rebound.

Howard Penney

Managing Director

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