NFP: Outstanding data not to stop dollar's vulnerability
US Non-Farm Payrolls jumped by 273,000 in February, beating expectations but the Fed is focused on the coronavirus fallout and the data is unable to stop the next cut. The US dollar is set to resume its falls, Yohay Elam from FXStreet reports.
“The American job market looks great – or at least that was the picture in February. There is nothing not to like in the data. Non-Farm Payrolls rose by 273,000, smashing expectations, while wages advanced by healthy rates of 0.3% MoM and 3% YoY.”
“The US dollar edged up in response to the data, but that may be temporary – there was another critical note from the Bureau of Labor Statistics.”
“The US dollar has room to resume its falls. The US economy is outperforming other developed economies and still enjoys higher interest rates. Nevertheless, the US economy has more to lose and the Fed has more room to cut. The direction of travel and its pace is more significant than the pre-crisis situation.”