Payrolls’ Nod to the Fed

Nonfarm payrolls were undeniably affected by the hurricane and strikes in October. Nevertheless, the plunge from 223K to 12K – well below estimates of 125K – is likely to provide the FOMC with all the cover they need to cut rates again when they meet next week.

Futures have rebounded, retaking the 50-day moving average. But, the rising wedge has clearly broken down.

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