Latest Non Farm Payroll data offers both Bullish and Bearish Insights

Following a week in which both ISM Non Manufacturing and Initial Jobless Claims data recorded declines exceeding analysts expectations, the week’s culmination in the Non Farm Payroll release has seen many continue to examine the implications thereof. Whilst market sentiment appeared to shift from nervousness to relief; a result of growth in Non Farm Payrolls; 244,000; Private Payrolls; 268,000; and Manufacturing Payrolls; 29,000; a rise in the unemployment rate driven by a decline of 190,000 in the Civilian Labour Force has seen the report provide ammunition for both the Bulls and Bears.

Despite this fact, recent months have seen the unemployment rate continue to fall, and whilst the rate has risen slightly in the most recent round of data, the surprisingly steep level of declines had meant that a reversion was likely to follow at some stage. The NFP release was undeniably positive, and whilst it does provide some negative data points, we expect to see a Bullish sentiment follow the release into the new week.