Summary:
- NFP of 228k beats forecasts and pushes USD higher
- Average earnings rise but not as much as expected
- Uni Mich index drops lower
- UK manufacturing production remains strong
- Bitcoin pulls back. Is it a modern version of the “silver corner”?
- Litecoin rallies more than 40%
The final NFP report of the year was a relatively strong one with a headline print of 228k coming in above consensus forecasts. Unemployment remains at a 17-year low of 4.1% as the impressive jobs growth seen in the world’s largest economy continues.
One blip from the release could be seen in the average earnings component, which rose by less than expected in increasing by 0.2% m/m. The initial reaction saw some US dollar weakness, but the buck has recovered throughout the afternoon and is currently edging higher against most of its peers.
The final economic release of the week from the US saw the University of Michigan consumer sentiment index fall lower, but any disappointment for USD bulls has been negated somewhat by a rise in inflation expectations. Gold has also fallen lower with the precious metal dropping to it lowest level in 4-months today.
UK industrial production was able to meet analysts’ estimates coming in at 3.6% yoy in October while economists had expected a 3.5% pick-up. It means quite a substantial acceleration from a 2.5% gain seen in September. The prime reason for a decent rise was record car production, however the overall outlook for the last quarter of this year was marred by another depressing performance registered in construction where output slid as much as 0.2% yoy vastly missing the estimate.
It’s not the first time when Bitcoin is called a speculative bubble. Indeed it was the case back in 2013 and many times throughout this year. Yet this time it feels different – with each $1000 added to the price the Bitcoin is becoming large in the global scale and its mind-bending rocket gains certainly cause few concerns here and there. On financial markets stories tend to repeat if you look behind far enough. So we are wondering here: is Bitcoin a modern version of the big silver corner from the 80’s?
Today’s trade has seen Bitcoin pull back a little, with the market down by 7% on the European close. Litecoin has stolen the show in the crypto space this afternoon with an incredibl esurge higher which saw the market rally by more than 40% at one point to post a new all-time high around 140.