Worldwide Financial – “Sun Worldwide” – (US Payrolls Disappoint)…

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‘Sun Worldwide’: Euphoria over November 2009’s jobs report faded with the release of December’s numbers.

Miami, USA, 18-1-2010- “Sun Worldwide” analysts are apparently unsurprised by the worse-than-expected US payrolls figures for December 2009.

Whilst most analysts were expecting a mere 3000 American to have lost their jobs, the number came in substantially worse at 85,000 throwing markets and the US dollar into confusion.

“Sun Worldwide” sources suggest that the conflicting data that appears to be emerging from the world’s largest economy is the result of distortions caused unprecedented amounts of stimulus from the US government. The majority of the jobs created are emerging in the public sector and include many roles involved in infrastructure building.

The news caused the US dollar to weaken as investors renewed their concerns about the strength and sustainability of the US economic recovery.

“Sun Worldwide” sources said that the markets are anticipating that the US Federal Reserve will honor its pledge to end its treasury buyback scheme at the end of March 2010 and that this will be a significant step in the removal of the safety from under an economy that relies on the consumer for 70% of its gross domestic product at a time when “the consumer is still absent from the party”.

“Sun Worldwide” analysts however, believe that the Fed may be forced to extend the program in order to keep mortgage rates artificially low if economic data does not improve before the March deadline.

For that reason, the firm said it is continuing to advise clients to minimize exposure to dollar holdings.