Published December 8, 2023
- The US Dollar (Index) jumps over 0.25% on Friday in the immediate aftermath of NFP numbers.
- Traders see Unemployment rate fall to 3.7%, below 3.9% estimate.
- The US Dollar Index pops back up towards 104.
The US Dollar (USD) is brushing off the Japanese crisis it had on Thursday. At one given point the Japenese Yen was up 4% against the Greenback. The strong US Jobs Report print though, washes off that devaluation and puts the US Dollar back on the map.
On the economic front, the Unemployment rate is taking up all the attention. A drop from 3.9% to 3.7% is a much telling sign on how strong and tight the labor market still is. Fast forward now to the University Prelimenary numbers for December to look for confirmation and possible another leg higher in the US Dollar Index.
Daily digest: Unemployemen Rate big winner
- The US Nonfarm Payrolls report mostly in line with some small positive upticks:
- Nonfarm payrolls number for November went from 150,000 to 199,000, above the 183,000 consensus.
- Monthly Average Hourly Earnings went higher, from 0.2% to 0.4%
- Yearly Average Hourly Earnings went a little lower, from 4.1% to 4%.
- The US Unemployment Rate for November contracted further from 3.9% to 3.7%
- Near 15:00 GMT the University of Michigan will release its preliminary data findings for December:
- The Sentiment Index is expected to head from 61.3 to 62.
- The Inflation expectations are set to head from 3.2% to 3.1%.
- European and US equities are looking for direction in the aftermath of the US Jobs Report. US equities are not digesting it all to well and are in the red, less than 1%.
- The CME Group’s FedWatch Tool shows that markets are pricing in a 97.7% chance that the Federal Reserve will keep interest rates unchanged at its meeting next week.
- The benchmark 10-year US Treasury Note jumps to 4.25% and erases earlier pressure on rate cuts.
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SOURCE: www.fxstreet.com
RELATED: Euro slides, euro zone bonds and stocks hit by US jobs data
U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights
Published December 8, 2023
LONDON, Dec 8 (Reuters) – The euro slid on Friday, after data showed the U.S. economy generated more jobs than expected in November, lowering the chances of a rate cut early in the year, while euro zone bond yields rose and regional stocks fell.
The euro was last down 0.5% at $1.0742, having traded around $1.07715 ahead of the payrolls numbers, near its lowest in three weeks.
Benchmark 10-year German yields rose 9 basis points on the day to 2.279%, compared with 2.244% before the data. The STOXX 600 (.STOXX) regional equity benchmark was up 0.2% compared with a rise of 0.3% earlier on.
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SOURCE: www.Reuters.com
RELATED: BRICS: China Aggressively Dumps US Dollars For 3 Days Straight
Published December 6, 2023
BRICS member China is yet again dumping US dollars in the global currency markets to protect the Chinese Yuan. The Chinese state-run banks offloaded US dollars in the spot foreign exchange markets for three consecutive days on Monday, Tuesday, and Wednesday this week. Chinese banks resorted to dumping US dollars after rating agency Moody’s cut China’s outlook to negative. The ratings affect the Chinese Yuan’s prospects and could make the currency weaker in the global markets.
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SOURCE: www.Watcher.guru
