Today’s non-farm payroll data came in very strong with an uptick in manufacturing hiring adding to robust gains in the services industries. This has strong implications for risk assets, and the prospects for the US economy as well as for global growth. The reaction was a strong gain in US equities, and very good performance by commodity currencies against the European higher yielders. The USD had a mixed reaction, declining against the AUD, NZD, and CAD, but strengthening against the EUR and GBP, and the JPY.

The mix of fundamental data from the US was not encouraging. The macro data pointed to continued falling house prices, a less robust increase in activity from the Chicago PMI, as well as less confident consumers. All 3 reports came in below expectations, and coincided with some negative headlines out of Europe in regards to the completion of Greek debt negotiations.