The US Dollar is broadly weaker this morning as Traders digest yesterday’s shockingly positive jobs report.
The US added 130k jobs in January, doubling analyst expectations of 65k, and while this stabilization in the labor market is constructive for the Dollar, it is important to keep in mind that this is only one data point, and the labor market as a whole is still in an uncertain state. The print does signal that the worst could potentially be over, thereby reducing the Fed’s urgency to cut rates, but more data is necessary with jobless claims for the week ending February 7th coming in essentially at expectations.
Yesterday’s jobs numbers also solidified existing concerns about inflation, which is many Trader’s next focus with CPI numbers being released tomorrow morning. Those concerns are being exacerbated by mounting speculation around a US strike in Iran, which has consequently driven oil prices higher. CPI numbers tomorrow are expected to come in at 0.3% Month-over-Month, and 2.5% Year-over-Year.
What to Watch This Week…
- US Nonfarm Payrolls Wednesday Feb 11th
- Monex USA Online is always open
GBP ⇑
The British Pound grinded higher against the Greenback this morning following a GDP print that came in slightly below analyst expectations. Sterling is being buoyed by the fact that Prime Minister Keir Starmer has continued to stave off attempts to unseat him amid recent controversy, and with parliament going into recess in a few weeks, he seems to have bought himself valuable time to quiet political uncertainty. Digging into the GDP print shows that the services index and private consumption beat expectations, with industrial production being the weak point. This will likely result in the trimming of expectations for not only the first quarter, but also 2026 as a whole.
