The argument against another Fed interest rate cut was slightly boosted on Friday afternoon after the United States added a solid 164,000 jobs to its economy last month.
With unemployment near a 50-year low at 3.7% and average earnings edging up to 3.2% from 3.1% year-on-year, the US economy remains a better position in comparison to everyone else. However, job gains for the two previous months were revised downwards by a total of 41,000.
Today’s jobs report is unlikely to impact the Federal Reserve’s monetary policy path and this sentiment was reflected in the Dollar’s muted reaction. While economic data from the United States will influence rate cut speculation, the driving factor behind future monetary easing will revolve around US-China trade developments.
Taking a look at the technical picture, the Dollar Index is hovering around 98.30 as of writing. A weekly close below 98.00 could trigger a move back towards 97.50 in the week ahead.
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