The US dollar index increased 0.17 percent in yesterday’s trading session, continuing to digest yesterday’s dovish Fed announcement. On the release side, initial jobless claims jumped to 253,000 versus the 215,000 expected. The previous release of jobless claims were 199k. Furthermore, the Chicago purchasing manager for January came in at 56.7 versus 61.5, lower than expected. The jump in jobless claims is a bit disconcerting because it might be the first indicator of a recession. However, the reason might be because of imperfect data due to seasonal adjustment factors as well as the government shutdown. Emerging market currencies have continued to outperform since yesterday’s trading session.
This morning, the change in non-farm payrolls came in at 304,000 versus the 165,000 expected, the unemployment rate for January came in at 4.0 percent versus the 3.9 percent expected. Average hourly earnings came in at 0.1 versus the 0.3 expected. The market is ignoring the non-farm payrolls’ positive data, but at the same time, the unemployment rate came in worse than expected.