The US Dollar is broadly weaker this morning ahead of the January jobs report releasing later this morning.
The report, which was delayed last Friday due to the partial government shutdown, is expected to show an addition of approximately 70k jobs and the employment rate holding steady at 4.4%. We will also be receiving the annual benchmark revisions to payrolls, which is expected to show a reduction of approximately 825k. Should numbers print to the downside, expect the Dollar to edge back towards the lower end of recent ranges.
The semi-softening of the labor market has Traders beginning to price in the possibility of three interest rate cuts in the United States this year, despite most agreeing that two cuts was the most likely course of action up to this point. Jobless claims releasing tomorrow and CPI numbers releasing on Thursday will help paint a more holistic picture of where the economy stands as of today and what action needs to be taken as a result.
What to Watch This Week…
- US Nonfarm Payrolls Wednesday Feb 11th
- Monex USA Online is always open
GBP ⇑
The British Pound is one of the G10’s biggest gainers against the Greenback this morning as concerns begin to ease surrounding the position of Prime Minister Keir Starmer. While Starmer holding off power grabs from within his own party has provided the Pound with some much needed relief, the technical story is that Traders have increased their bets that the Bank of England will cut rates in March following their decision to keep rates on hold last week. That dovish positioning is providing the Pound with a secondary boost.
