"The dollar traded within a range on Thursday following a volatile reaction to stronger-than-expected labour data. January nonfarm payrolls rose by 130,000, marking the strongest monthly gain in over a year, and the unemployment rate unexpectedly dipped to 4.3%. The figures eased recent fears of a sharper slowdown, providing support for both the currency and yields. Average hourly earnings advanced 0.4% month-over-month, rebounding from a softer December print and exceeding expectations."
"Despite this resilience, markets continue to price in two rate cuts by year-end, with the first easing expected in June. Attention now turns to the upcoming inflation release. Headline and core prices are expected to rise 0.3% on the month. An upside surprise would likely push yields higher and strengthen the dollar by dampening easing bets. Conversely, if figures come in line with expectations, the currency could remain confined to consolidation,"
The dollar traded in a range after a volatile market response to stronger-than-expected US labour data. January nonfarm payrolls rose by 130,000, the strongest monthly gain in over a year, while the unemployment rate fell to 4.3%, easing fears of a sharper slowdown and supporting both the currency and yields. Average hourly earnings grew 0.4% month-over-month, rebounding and exceeding forecasts. Markets still price two rate cuts by year-end, with the first expected in June. Focus shifts to the upcoming inflation report; higher-than-expected readings would likely lift yields and strengthen the dollar.
Read at London Business News | Londonlovesbusiness.com
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