Optimism Undone by Shocking NFP, Dollar and Yields Tumbled While Fed officials might disagree, it only took one poor non-farm payroll report to undo all the optimism over the US economy and more than reversed dollar's recent gains. Based on the solid ISM and ADP reports, markets had higher expectation of the NFP. But eventually, it showed only 74k job growth in December, less than half of consensus of 193k, and well below the most pessimistic forecast by economists. The unemployment rate did show sharp improvement from 7.0% to 6.7%. But that was primarily due to 347k contraction in labor force. This can also be reflected by participation rate dropping back to 62.8%, the lowest level since 1978. The data raised much doubt over the expectation that Fed will continue to taper the asset purchase at every FOMC meeting and end it by the end of this year. Full Report Here... | 
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