USD gains as jobs double expectations
Daily Currency Update
The US Dollar index (DXY) was up this morning due to significant job growth in January. The Non-Farm Payrolls release this morning showed that the US economy added 353,000 jobs last month, almost double the consensus expectation of 180,000. Unemployment also dropped to 3.7% from 3.8% last month, continuing an unprecedented period of strong employment in the US. Market expectations for an interest rate cut in March shifted after this release and the Fed announcement from Wednesday.Key Movers
The euro and GBP outperformed the USD in the overnight markets but have now given up all the gains they had made after the US jobs release. Yesterday, the Bank of England held rates steady rather than cutting as the re-engineered inflation forecast showed inflation may tick back up, causing the bank to take a “wait-and-see” position.Oil prices continued to fall this morning. The benchmark WTI price dropped back towards $73 a barrel from a high of $77 last week. This is mainly due to rumors of renewed efforts to negotiate a cease-fire in the Middle East.
Like most of its peers, the Canadian dollar had been gaining against the USD overnight but turned sharply down after the release of the Non-Farm Payrolls in the US. Canadian jobs weren’t released today but will instead come out next week. Also working against the Loonie is the falling price of Oil, giving pause to what looked like a run back towards $80 a barrel.
Expected Ranges
- EUR/USD: 1.0790 - 1.0910 ▼
- GBP/USD: 1.2654 - 1.2766 ▼
- AUD/USD: 0.6524 - 0.6618 ▼
- USD/CAD: 1.3367 - 1.3534 ▲