“Friday’s Nonfarm Payrolls number cemented the likelihood of another 25 basis point hike and reduced the chances of an eventual rate cut later in the year, sending equities lower and the greenback higher said John Doyle, vice president of operations and trading at Monex USA.
“Overall, the dollar’s decline since the end of November has been impressive. However, now it looks like it was a bit overdone.Doyle said.
Data on Friday showed that US job growth accelerated sharply in January, while the unemployment rate hit its lowest level in 53 1/2 years (3.4%), pointing to a weaker job market. stubbornly tight and a potential headache for the Federal Reserve in its fight against inflation. The data became known after Wednesdays The Federal Reserve raised rates 25 basis points and said there was a turning point in the fight against inflation, leading investors to expect a slowdown in the rate of hikes ahead.
This Monday, the US Treasury Secretary, Janet Yellen, declared that she saw a way to avoid a recession in the United States, with a significant decrease in inflation and strength of the economy, given the strength of the US labor market.
Pressured by geopolitical risks and inflationary surprises in the country, the Turkish lira briefly fell to a record low of 18.85 in early trading after the strong earthquake that struck the region.
For its part, the pound sterling was broadly stable at $1.203, just below its one-month low, as traders remain attentive to UK growth data and statements from Bank of England officials on the rate of interest rate rises.
The yen fell more than 1% against the US dollar after the Nikkei newspaper reported, citing anonymous government and ruling party sources, that Bank of Japan Deputy Governor Masayoshi Amamiya was being polled to be the next boss.
Amamiya is considered the “softest among the contenders, which is dashing hopes that the BOJ’s monetary policy normalization can progress under a new chief,” Saxo strategists said.
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