January employment report released by Labor Department has certainly given another go to Dollar against its rival currencies. As per data released by U.S Labor Market, there had been an increment of approx. 151,000 employments last month. Even though the estimates are lower as comparison to what analysts had been forecasting, there’s still a spark for stronger-than-expected hourly wages ratio alongside a drop-over in national employment rate.
[According to Market Watch: The ICE U.S. Dollar index (DXY), +0.69% – a measure of the Dollar’s strength against a basket of six rival currencies, was BULLISH on the day after the data; a rebound from previous result. The BULLISH scale showed 0.1% at 96.5190. As for Euro (EURUSD), -0.8831% it TRADED at US$ 1.1192 after the data, BEARISH from US$1.1209 shortly before. The Dollar TRADED at 116.74 Yen after the data, slightly relocated from its level before the report. The pound (GBPUSD), -0.7951% TRADED at US$1.4520, BEARISH from US$1.4566 before the data.]
The Dollar became entangled: Till data showed a rise in first-time jobless claims, the dominant-commodity currency was relying mainly over Wednesday’s rout on concerns about U.S. economy growth amidleast expectationsfrom the Federal Reserve to be delivering more enhanced interest hike this year.
“The continued moderation in U.S. rate expectations continues to leave the [dollar] on the defensive.” – CIBC currency strategist, Jeremy Stretch
“Even though the Federal Open Market Committee appears to be on course to implement higher borrowing-costs over the coming months, the disinflationary environment across the major industrialized economies may keep the Fed on the sidelines for most of the year as central bank officials look for greater evidence of achieving the 2% target for price growth.” – DailyFX currency strategist, David Song
Apart from this, there are financial timeswhenthe Dollar and COMMODITIES TRADE tie into a very tight inverse correlation – hence, this is the current scenario for Global Crude Market. While all eyes have been on OPEC for deciding its fate for production cut in order to manage imbalanced global economy, Dollar is in sight too.
