The US dollar’s weakness offered a boost to emerging-market currencies and oil.
The market awaits NFP
The United States will release the level of Non-farm payrolls (NFP) or Non-farm employment change on March 8 at 15:30 MT time. The NFP is known as a change in the number of employed people. It is considered as one of the indicators of consumer spending, which represent the economic activity of the country. This indicator is known for its high correlation with the USD, which results in very high volatility of the American currency. The last time, on February 1, NFP increased by 304K jobs, beating the analysts’ expectations. However, the weaker release of the average hourly earnings and higher-than-expected unemployment rate resulted in mixed trading of the greenback. Let’s see how the NFP will affect the USD this time.
• If the NFP is greater than expected, the USD will go up.
• If the NFP is weaker than expected, the USD will go down.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.