Over the past few weeks we have spoken alot on the Fed’s use of public announcements by its cadre of regional Fed Presidents to try to sway markets into believing that the central bank was sure to hike interest rates in either June or July. And of course, inside most of this rhetoric is the single key component that is normally ignored by the computer algorithms that make up 75% of all trades, and that being the concept of data dependency.
Well in June 3, data dependency just went bye bye.
May’s non-farm payroll report just came out a couple hours ago, and it sent a shock through the entire financial system. That is because the report printed a jobs number of just 38,000 new hires, which is the lowest single month since the height of the Great Recession back in 2010.