The number of jobs added in the US increases by more than forecasted, with the Unemployment Rate also ticking lower. This suggests that the labour market is still strong, despite other data suggesting we have begun to see signs of underlying weakness.
Average Hourly Earnings (a potential inflationary pressure) is lower MoM and YoY. Increased inflation isn't going to come from the labour market.
Short-Term: The market will need to digest this. We've seen more strength than what was anticipated, and this might result in less Interest Rate cuts needed, should this labour market strength continue.
Market Reaction Since: Mostly unchanged. Good news is good news, despite this potentially pushing Interest Rate cuts out slightly further. It's possible that the market has a small pullback on this, but we expect it to be bought.
How To Position: We've increased our allocations recently, and we'll continue to do so on pullbacks.
BTC: BTC is at a crucial point here having broken out of the broadening wedge. If price can maintain this breakout (hold above the top border of the broadening wedge) then we expect BTC to move higher and break out to new all-time highs in the coming days and weeks.
