King Dollar remained in the dumps on Friday afternoon despite non-farm payrolls for February smashing market expectations.
The United States added a whopping 227,000 jobs to its economy last month, its largest gain since May 2018 as employment held up before the coronavirus outbreak intensified. The unemployment rate edged down to 50-year low at 3.5% while average earnings picked up to 0.3% month-to-month but remained unchanged at 3% year-on-year.
Overall, the data is quite solid and illustrates the resilience of the US labour markets in the face of coronavirus outbreak. However, this is unlikely to derail the Federal Reserve from cutting interest rates again this month and such continues to be reflected in the Dollar’s valuation.
For what it’s worth, today’s report may act as a benchmark to compare with once the impacts of the coronavirus are felt across the the US labour markets and economy.
Taking a look at the technical picture, the Dollar Index is trading around 95.80 as of writing. A breakdown above 95.80 should open a path towards 95.50.
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