US greenback slumps on rising unemployment and weaker wage progress

The US greenback is on the lows of the week following the February non-farm payrolls report. The headline quantity was robust at +275K in comparison with +200K however beneath have been some comfortable particulars. For starters, the prior two studies have been revised collectively decrease by 167,000 jobs, leaving complete jobs decrease than anticipated.

The family survey additionally continues to level to softness with unemployment rising to a post-pandemic excessive of three.9% in comparison with 3.7% anticipated.

The market additionally shifted to cost in additional charge cuts after wage progress slowed to 0.1% m/m in comparison with 0.3% anticipated. As well as, the jarring +0.6% studying from January was revised right down to +0.5%.

The consequence was market pricing shifting to 100 bps in Fed cuts this yr from 95 bps. The US greenback fell throughout the board with EUR/USD climbing to 1.0982 from 1.0942 earlier than giving a bit again.

The strikes have been comparable throughout the board and gold rose to a report excessive of $2176. The fairness market additionally cheered the prospect of charge cuts with S&P 500 futures up 13 factors in comparison with a slight loss earlier than the report.