The USD appears to have been provided with a temporary boost following the news that the United States added another 211,000 jobs to its economy over the previous month, significantly above expectations of marginally below 190,000 with the US employment rate falling to 4.4%.
Although there is an impressive downside surprise with the unemployment rate, and this data does overall provide further confidence to expect another US interest rate rise in June, I don’t necessarily expect the Dollar to continue trending higher over the short term as the markets have already mostly priced in another interest rate hike from the Fed.
All in all this NFP report represents a solid rebound from the previous jobs report, and supports the indications that the Federal Reserve provided earlier in the week that the slowdown seen in US economic data early in 2017 appears to be temporary.
I would expect that investors will take further encouragement from this jobs report that the Federal Reserve will pull the trigger on another US interest rate increase in June.
Comparebroker is a comparison site and we spend hundreds of hours to keep the information up to date. However, users are advised to do their own due diligence and nothing can be perceived any advise. The content on the website is purely for education purposes only
Recommended Content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.