Job creation slowed to a crawl during March, with the U.S. economy creating just 88,000 positions though the unemployment rate fell to 7.6 percent. Friday's report fell short of economist expectations of 200,000 new jobs, confirming some of the weakness in recent reports. Moreover, the drop in the jobless rate was little more than a statistical anomaly, with the labor-force participation rate tumbling to a 34-year low of 63.3 percent.
With speculation rising that the Federal Reserve soon would start winding down its asset purchase program, the weak jobs report probably keeps the central bank on hold at least through the end of the year. The central bank has tied the end of its zero interest rate policy to a drop in the unemployment rate to 6.5 percent.
Gold rallied over 1.5 percent on Friday, its biggest one-day gain since November, as disappointing U.S. job data fueled expectations the Federal Reserve will continue its bullion-friendly bond purchases. Crude oil fell to an eight-month low as the bleak U.S. jobs data dimmed the outlook for fuel demand in the world's largest oil consumer.
The U.S. dollar weakened against most major currencies, hitting nearly two-week lows against the euro, as weaker-than-expected jobs data raised concerns that the pace of recovery in the American labor market has slowed. The Bank of Japan's massive stimulus announcement should keep the yen's downtrend intact. ITZ sees a near term rally in the Euro, with softness in the jobs data. But this is a minor pullback in the U.S. economy and expect a slowdown in the next couple of quarters and then we will see growth picking up again in the last quarter of the year.
Art Cashin, UBS, shares his thoughts on the dismal employment number. Where can you go to hide?
WTI Crude reversed @ $97.70 level link
Silver tested support slightly below $27 level link
Back in March ITZ highlighted the similarites bewtween Apple & Google on Twitter when anaysts gave a $1,000 price target--- Negative Divergence Top
ITZ entered Kodiak Oil & Gas (KOG) on Friday