What to make of the payroll report and Dollar –

As expected US payroll data added massive volatility in the market. Gain was massive.

• Euro went down more than 150 points against Dollar, currently trading at 1.074 against Dollar.
• Pound after all day's fall, down another 90 points after payroll.

It looks like Dollar has hit a home run.

Given the big shoot up, volatility is not surprising. FED hike seems surety now.

Actual Facts -

• October headline Payroll came at 271,000 beating expectation of 180,000.
• Net revision for last two months came at +12,000.
• Last month's payroll number got revised to 137,000 from 142,000.
• Average hourly earnings rose by 2.5%, 0.4% gain on monthly basis. Wage increase stand highest since
• Unemployment rate drops to 5%
• Manufacturing payroll remained flat, compared to an expected drop by 5000 and prior job loss of 9000.

What to expect now?

• US growth is good news so equities need not sell off, however Dollar is likely to remain very well bid. Commodities on the other hand might face tougher time, given the strength of the Dollar.

Dollar index is currently trading at 99.07, highest level since March this year.