Labor Department reports on non-farm payrolls took markets by storm, reporting a surprising uptick in monthly hiring – while at the same time showing that the national unemployment rate slid a bit lower.  Although the news was good for US equity benchmarks, higher risk currencies like the Euro and Pound Sterling slid following the news.  Currently trading at 1.5786, the British pound is lower than the 1.5852 high against the dollar set earlier in the session.  The Euro is now down by 0.17% at 1.3121.

According to the US monthly employment survey, the economy added 243,000 jobs.  The figure is far greater than the 150,000 jobs expected by the market and is encouraging given the rather tepid data this past week.  Additionally encouraging, the national unemployment rate ticked lower to 8.3% – down from 8.5% witnessed in December.  Gains in employment were seen across the board, for the most part – with gains in sectors that have all been accustomed to major monthly declines.  Construction sector additions were in the realm of 21,000 last month as private payrolls soared by 257,000 in the month.  Government workers, however, continued to lose ground – dropping by 14,000 on major federal and local government cutbacks.

All in all, the survey results for January are nothing but positive.

Even more so when taking into account the fact that payroll gains were made as the country’s labor force added workers and expanded, reducing the unemployment rate.  Previously, reductions in the unemployment rate were attributed to the unemployed dropping out of the labor force on discouragement.

But, today’s positive gains aren’t necessarily working for the currency market – although buoying higher expectations for economic development in the equity markets.  The higher figure may now mean that Federal Reserve accommodation may be postponed in light of an improving labor picture – placing downward pressure on currencies like the Euro and the Australian dollar.  Previously, US central bankers sided with loose monetary policy in order to lend support to the rather soft employment environment.