The market expectations of a probable US interest rate increase in March were fully cemented by February's solid NFP headline figure of 235k which illustrated steady growth in the US labour markets. Although average hourly earnings may have missed expectations, the unemployment rate fell to 4.7% simply displaying US labour force resilience in a period of uncertainty. Economic data from the States continues to follow a positive trajectory and with the positive US jobs data adding to the basket, the prerequisites needed for the Fed to pull the trigger next week have been successfully achieved.

Although some concerns may still linger in the background regarding the ongoing Trump uncertainties, today's data has visually shown that wages grew and employment rose in the first month of Donald Trump's presidency. The overall economic outlook for the US continues to look encouraging with further gains expected on the Dollar as speculators bet on the Fed raising US interest rates beyond March.

It should be kept in mind that the depreciation of the Dollar following the firm US jobs data has nothing to do with a change in sentiment, but potential profit-taking ahead of the weekend. The technical correction may come to an abrupt end with bulls back in action when the Federal Reserve raises US interest rates next week.

From a technical standpoint, the Dollar Index bulls need a solid break and weekly close above 102.00 to open a path higher towards 102.50.

Disclaimer:This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 90% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD moving one step closer to 1.1000

The shared currency remains under pressure amid dismal local data and persistent demand for the greenback in a risk-averse environment. EUR/USD trading near a daily low of 1.1009.

EUR/USD News

GBP/USD trims early gains, trades in the red

The GBP/USD pair has retreated from its daily high of 1.3105 and now trades marginally lower daily basis near 1.3050, amid dollar’s strength, looming BOE and Brexit.

GBP/USD News

Crypto market: FOMO mode on, the late-comer's doubt

The crypto market opens the trading week by taking advantage of the momentum of the movement that started early Sunday morning. As if it were an established rhythm, this week it is time to go up after going down the previous one, and up again the previous one.

Read more

WTI bounces from 3-month lows near $52.00

There is no respite for the barrel of WTI on Monday, as prices of the American benchmark for the sweet light crude oil tumbled to the $52.00 region in early trade, area last visited in early October 2019.

Oil News

USD/JPY: Bears lead on the run to safety

Coronavirus getting stronger, infections to continue to rise. Risk-off Monday, an empty macroeconomic calendar exacerbates sentiment trading. USD/JPY to accelerate its decline on a break below 108.65, a critical Fibonacci support level.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures