Greenback dives as American jobs report tames rate hike bets

Greenback dives as American jobs report tames rate hike bets

On Monday, the evergreen buck dived versus a currency basket right after the fresh American jobs report disclosed that while jobs surge remained firm, spurring risk appetite, wage surge speeded down, thus taming hopes for a faster tempo of rate lifts in 2018.

The US dollar index, gauging the American currency’s strength versus a group of six major rivals,  hit 89.94, heading south 0.18% for the day.

On Friday, the Labor Department reported that the American economy generated 313,000 jobs in February, although average hourly earnings tacked on by 0.1% last month.

The firm jobs surge spurred global risk appetite, and the slowdown in wage surge dampened hopes for four rate lifts by the Fed in 2018, which is negative for the evergreen buck that tends to be more attractive to yield-seeking market participants when borrowing costs go up.

The common currency inched up, with EUR/USD soaring 0.18% being worth 1.2329.

Leaps in the common currency were held in check right after European Central Bank Governor Mario Draghi dared to downplay a move to cease the easing bias from the previous week’s rate statement and also issued a warning that growing protectionism threatened the outlook for surge in the euro zone.

The British pound also gained ground versus the US currency, with USD/GBP adding 0.17% being worth 1.3877.

Versus the Japanese yen, the evergreen buck declined, with USD/JPY sliding 0.24% hitting 106.54.

Demand for Japan’s currency was spurred amid worried over a soaring cronyism scandal closely connected with the Japanese prime minister as well as his wife involving the sale of public land.

The safe haven yen is prone to going up in times of market instability.

Additionally, the risk sensitive Australian as well as New Zealand dollars grew too, with AUD/USD soaring 0.19% reaching 0.7862 and NZD/USD rallying 0.43% being worth 0.7310.

 

 

 

Similar

USD/MXN: optimistic on the vaccine coming?
USD/MXN: optimistic on the vaccine coming?

During the daily press briefing of Andres Manuel Lopez Obrador, it was announced that Mexico will receive 1.4 million doses of the vaccine by the end of January. Is that optimistic enough for the peso?

Latest news

Stocks up, USD down
Stocks up, USD down

S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.

ECB report is in focus
ECB report is in focus

The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time. 

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

Manager will call your number

Correct number

Your request is accepted

Manager will call your number

Next callback request for this phone number
will be available in {time}

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera