The U.S Dollar Index (DXY) declined by nearly 0.28% today following a mixed payrolls report. The U.S. economy added 275,000 jobs in February. Traders had largely anticipated a gain of 190,000. However, the unemployment rate cranked up to 3.9% from the prior 3.7%.
The unemployment rate has been under the 4% mark for over two years now. The numbers point to workers taking longer to find new jobs, which improves legroom for the Fed to embark on rate cuts. However, next week’s CPI print remains a key data point to keep an eye on.
The DXY has slid by nearly 1.4% over the past month with the rising possibility of a rate cut in June and strengthening Euro and Yen. Additionally, the latest comments from Fed Chair Jerome Powell indicate lower rates if inflation subsides.
An anticipation of the BOJ opting for higher rates is lending strength to the Japanese Yen. Meanwhile, the ECB…
