After months of gentle simmering, America's jobs market is back on the boil in a clear sign the US economy has cranked up the gas, says Marcus Bullus, trading director at MB Capital…
In the frantic minutes that followed the release of May's surprisingly strong jobs numbers, both the dollar and Treasury bonds were the big winners as the prospect of a September interest rate hike suddenly loomed larger.
But equities balked at the thought of the increasingly imminent removal of the economy's low interest rate crutch.
It's still an open question whether the US economy will stumble or start to pick up speed when the Fed snatches back that crutch.
After so long at near zero rates, many American businesses have forgotten what it's like for banks to charge normal levels of interest.
The US economy is firmly back in gear and creating jobs at a spectacular rate, but the inevitable – and ever more real – prospect of rate rises may prove a bump in the road.
