US payrolls rebounded in October plunged expected rate cut

Earlier this month the United States released in September the number of new jobs than expected, while August data was also revised up substantially, the United States out of the market in the shadow of economic recession. Fed rate cut in October or so respondents expected the following.

Last Friday the Labor Department announced that in September the number of new jobs has increased by 11 million, 100,000 more than previously expected; More importantly, the August employment data from 4000 that fell to an increase of 8.9 million people, alleviating investors in the economic prospects of anxiety.

September 7 release of August payrolls, breaking the four practice, the first decline in the market had plummeted, forcing the Fed’s September 18 meeting decided to discuss interest rates sharply cut 50 basis points to 4.75%.

Data released in less than an hour, Fed Vice Chairman Cohen said, facing economic slowdown and the double risk of accelerating inflation, Federal Reserve officials in setting interest rates to be "agile." Market interest rates, investors had expected the Fed to cut rates in October by 25 basis points to the probability of 72%, but in September employment data, the market is expected to narrow this month cut the probability to 48%.

The rate cut expected decline in October, the foreign exchange market also supported the dollar. Data on the euro against the dollar (1.4112, -0.0023, -0.16%) hit the lowest 1.4033; USDJPY (117.14,0.2600,0.22%) increase in the maximum 85 basis points to 117 .28, in the final was at 117.00; the dollar index rose to the highest intraday 78.819, but was close at 78.308.

October 1st Asian currency euro set a record high against the dollar to 1.4282, but then began a three-session decline, the euro against the dollar last week has dropped 1%, August 17 biggest decline since; While the dollar against the yen also gained 1.8%. since June last year, a maximum week.