7.9 C
Friday, March 31, 2023

The super dollar falls after an economic data that may have an impact on rates

Must read

- Advertisement -

The super dollar falls this thursday march 9 after data emerged showing US jobless claims rose more than expected last week, which raised the expectation that a weaker job market managed to prevent the Federal Reserve pick up the pace again rate hikes of interest.

- Advertisement -

The Initial claims for state unemployment benefits increased 21,000 to a seasonally adjusted figure of 211,000 for the week ending March 4. Economists polled by Reuters they had forecast 195,000 applications for the last week.

The data comes ahead of the expected US national employment report for February, which could determine whether or not the Fed raises the benchmark interest rate by 50 basis points at their meeting on March 21 and 22.

Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina

- Advertisement -

“Many traders are breathing a sigh of relief because we are starting to see some weakness in the labor market,” he said. Edward MoiaSenior Market Analyst at OANDA in New York.

“The fear is that if we get a strong payroll report tomorrow, it will cement rising expectations for a rate hike half a percentage point”.

The dollar falls 0.3% against a basket of currencies, to 105.29 units. The index is down from a three-month high of 105.88 seen on Wednesday.

The euro gains 0.25%at $1.0570, and has risen from a two-month low of $1.0524 recorded the previous day.

Fed Chairman, Jerome Powellreaffirmed on Wednesday his testimony before the Congress on Tuesday about the possibility of higher and potentially faster interest rate increasesbut he emphasized that the debate was still ongoing because the decision depends on the data that will be issued before the March meeting.

Fed funds rate futures traders are now considering the probability that the Fed will raise rates by 50 basis points at 66%, up from 22% before Powell’s comments on Tuesday.

It is planned that the Data from Friday show that employers added 205,000 jobs in February, well below the 517,000 jobs created in January. In addition, it is estimated that wages would rise by 0.3% per month and 4.7% per year.

Source: Ambito

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

- Advertisement -

Latest article