- DXY drowns more, lost more than 3.5 % this week.
- It is absent from the salaries of non -agricultural salaries in February and the high unemployment rate.
- Federal reserve officials refer to multiple price cuts in 2025, which increases the weakness of the US dollar.
- The induction uncertainty continues with President Trump’s hint in the new Canadian graphics.
The US dollar index (DXY) extends its brutal chip on Friday, heading to the worst weekly performance in more than a year as traders accelerate sales before the February Employment Report. Greenback is now in free fall, with discounts in multiple interest rates and growing economic uncertainty that drives capital flows.
Meanwhile, the fluctuations related to tariffs continue, as the President of the United States (the United States), Donald Trump, keeps the markets by hinting on new trade measures against Canada, but refused to adhere to a timetable. DXY is now struggling to keep the 104.00 handle, after it has lost more than 3.5 % since Monday, which represents a historical value reduction.
Mobers Daily Digest Market Movers: Dollar Cyro
- On the data interface, the non -agricultural American salaries (NFP) came for the month of February 151,000, and lost 160,000 expectations but above 125,000 January.
- The average profit growth in an hour slowed to 0.3 % month to the month, a decrease from 0.4 % in January.
- The unemployment rate in the United States increased to 4.1 %, which represents an increase from the previous 4.0 %.
- The governor of the Federal Reserve, Christopher Walir, has suggested that up to three price cuts this year, which enhances market expectations.
- Federal Reserve Chairman Jerome Powell has warned that the uncertainty in policy is complicating the central bank’s ability to control monetary policy.
- The markets continue to digest Federal Reserve Policy expectations, while narrowing the range of interest rates between the United States and other economies.
- President Trump alluded to a new tariff for Canada, but refrained from confirming a specific schedule, leaving uncertainty, commenting on the markets.
- The CME Fedwatch now shows an increasing possibility to reduce the interest rate in June, as the prices traded in mitigation.
- On the daily chart, the Federal Reserve Persons Index fell toward 100, which reflects slowly from the federal reserve towards a more occurrence.
DXY Technical Expectations: Driving down the downward pressure
The US dollar index (DXY) has been established in a deep sale, as it was broken to less than 104.00 and reconsidering its levels since November 2024. The averages of simple movement for 20 days and 100 days (SMA) has now confirmed a declining intersection, which enhances negative momentum. RSI indicates the emergence of sale conditions, indicating a possible recovery in the short term, but Macd is still firmly in descending lands, indicating the continued risk of the negative side. If the DXY fails to restore 104.50, the following main support level lies in 103.50, which may determine whether the sales process extends more.
Common questions about employment
Labor market conditions are a major element in assessing the health of the economy and thus the main driver to evaluate the currency. High employment, or low unemployment, has positive effects on consumer spending and economic growth, which enhances the value of the local currency. Moreover, the very narrow labor market – a situation in which there is a shortage of workers to fill open positions – can have effects on inflation levels because the decrease in supply in employment and high demand leads to high wages.
The pace with salaries in the economy is the key to policy makers. High wage growth means that families have more money for spending, and usually lead to an increase in prices in consumer goods. Unlike the most volatile inflation sources such as energy prices, wages are seen as a major component in the basic and continuous inflation as it is unlikely to be removed from the increase in salaries. Central banks around the world pay close attention to wage growth data when making a decision on monetary policy.
The weight that each central bank is appointed to the conditions of the labor market depends on its goals. Some central banks explicitly have states related to the labor market, which exceeds inflation levels. The American Federal Reserve (Fed), for example, has a double mandate to enhance the maximum employment and stable prices. Meanwhile, the only mandate of the European Central Bank (ECB) is to maintain inflation under control. However, despite any mandates they have, the conditions of labor market are an important factor for policy makers given their importance as a criterion for the health of the economy and their direct relationship to inflation.
