Confidence in the US economy has received further uplift on Friday following another magnificent jobs report with a NFP figure of 292k in January. While recent US economic data do signal that economic momentum is slowing, job creation continues to act as the star performer of the US economy and this jobs report reinforces the possibility that the FOMC could raise US interest rates once more before the end of the current quarter.
With jobs creation picking up once again in the US economy, this should improve the bullish sentiment towards the Dollar. Currently, Fed policy makers are publicly announcing their intention for another four quarter-point rate hikes in 2016 and this positive NFP release validates the possibility of at least another rate increase in the future. Overall and despite the clear fact that inflation in the US is still very low, there is no denying that the US economy is still carrying the torch and standing on its own when it comes to the global recovery.
Gold has so far dropped nearly $20 today and investors are looking encouraged to keep taking profit on the metal after this impressive jobs report from the US economy.
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