The very fact that the Fed decided to taper QE3 to the end according to the plan leads us to believe that that FOMC new the October labor stats in advance.
In particular, the Fed promised that the final tapering move would take place only if that US rate of unemployment id below 6%. As for October, this rate was equal to 5,8%, thereby catching up with the pre-crisis level seen in 2008.
In particular, the USA saw a 214K increase in the amount of new job last month. Most likely, these figures allowed the FOMC to decide to taper QE3 to the end.
On top of that, the employment stats for August and September were revised to show improved employment figures as well. According to the revised reports, the amount of new jobs increased by 203K instead of 108K and by 256K instead of 248K in August and September respectively. This allowed the authorities to drop the unemployment rate from 5,9% down to the actual value of 5,8% we can see now. This is way below the 6,6% rate of unemployment seen in early 2014.
Forex
Meanwhile, the SRP Department of Masterforex-V Academy (known for its experts in predicting and capturing currency market moves) offers us its own picture of the current situation in the market of the UDS index (DX).
In particular, the chart indicates wave C of level Weekly. There is wave A of Daily going on inside of it. Most likely, we are about to see a retracement against sub-wave 5. We should monitor the situation to find out whether it is going to grow into wave B of Daily or just sub-wave B inside the “Hound of the Baskervilles” pattern by Elder/MF.
