The recent non-farm payroll didn’t meet market expectations and led to a bounce in Shares Silver Trust (SLV). This silver ETF is still down by 2.6% since the beginning of month. Let’s review the relation between SLV and the progress in the U.S. labor market and the latest changes related to SLV.
SLV and labor market – is the labor improving?
The recent non-farm payroll may have come short of market expectations but the report was generally positive: The rate of unemployment slipped to 5.8%, the participation rate edged up to 62.8% and the average hourly wage rose by 2%, year over year. Moreover, the non-farm payroll
The table above shows the number of jobs added, the expectations, the shift between expectations and actual figures, and percent changes in the price of SLV on the day of the publication of the non-farm payroll. The relation between the shifts in expectations and SLV percent changes is negative. This relation remains mid-strong and negative even for longer periods. So the lower than expected growth in employment eclipsed the results of the NF payroll report, which relatively good. As long as the labor market keeps improving, the FOMC is likely to be one step closer to hit the rate hike button.
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