Forex Today: Dollar, yields and stocks rise after US labor market numbers


What you need to take care of on Friday, March 3:

The US Dollar erased recent losses and strengthened on the back of US economic data and higher US yields. The greenback held onto gains even amid a late rally in Wall Street. US yields hit fresh highs, with the 30-year rising above 4% and the 2-year at fresh multi-year highs above 4.90%. The DXY rose more than 0.50%, stabilizing around 105.00.

Initial Jobless Claims declined to 190K and Unit Labor Cost for Q4 were revised higher from 1.6% to 3.2%. The figures contribute to the expectation about a more restrictive monetary policy than previously thought by showing extended tightness in the labor market. On Friday, Service sector data is due.

US February ISM Services PMI Preview: Will it influence Fed rate hike bets?

US stocks finished higher after a late rally that started following comments from Federal Reserve’s Bostic mentioning that the central bank “could be in a position to pause by mid to late summer.” On Wednesday the currency market reflected more optimism than equities; that changed on Thursday with currencies reacting only marginally to the rally in Wall Street as majors remained in a small range.

The EUR/USD erased recent gains and pulled back to 1.0570 and EUR/GBP consolidated around 0.8670. Eurozone inflation figures confirmed previous data having no impact on the Euro.

USD/JPY hit levels above the critical 137.00 zone, reaching the highest level in two months, supported by higher yields but it then pulled back. Inflation data for Japan is due.

GBP/USD dropped to test weekly lows at 1.1920, a zone that has become a key short-term support; it then rebounded to 1.1950 after the US Dollar weakened on risk appetite.

The Kiwi pulled back on Thursday but still remains among the top performers of the week. NZD/USD found support at 0.6200 and remains on its way to end a four-week streak of weekly losses. On a quiet session, USD/CAD moved sideways around 1.3600 while AUD/USD lost ground modestly, approaching the 0.6700 critical support.

An unusual steady session for gold that finished flat below $1,840/oz. Bitcoin held above $23,100 and late in the American session rose above $23,500.


Like this article? Help us with some feedback by answering this survey:

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD turns south toward 0.6400 after mixed Australian jobs data

AUD/USD turns south toward 0.6400 after mixed Australian jobs data

AUD/USD has come under renewed selling pressure and turned south toward 0.6400 after Australian employment data pointed to loosening labor market conditions, fanning RBA rate cut expectations and weighing on the Aussie Dollar. 

AUD/USD News

USD/JPY remains below 154.50 amid weaker US Dollar

USD/JPY remains below 154.50 amid weaker US Dollar

USD/JPY keeps losses for the second successive session, trading below 154.50 in Asian trading on Thursday. The pair is undermined by the latest US Dollar pullback, Japan's FX intervention risks and a softer risk tone. 

USD/JPY News

Gold price finds buyers again near $2,355 as USD licks its wounds

Gold price finds buyers again near $2,355 as USD licks its wounds

Gold price is attempting a tepid bounce in the Asian session, having found fresh demand near $2,355 once again. Gold price capitalizes on a softer risk tone and an extended weakness in the US Treasury bond yields, despite the recent hawkish Fed commentary. 

Gold News

OMNI post nearly 50% loss after airdrop and exchange listing

OMNI post nearly 50% loss after airdrop and exchange listing

Omni network lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.

Read more

Investors hunkering down

Investors hunkering down

Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.

Read more

Forex MAJORS

Cryptocurrencies

Signatures