Both jobs and wages were mixed in the first report for 2019. The confusing data justify a patient approach by the Fed. The US Dollar may follow the Fed’s lead and remain patient. Three mixed messages: 1) Headline The US economy gained 304,000 Non-Farm jobs in January, far above 165K expected or any “whisper” expectations stemming … “3 things to watch after the mixed NFP”
Month: February 2019
US Dollar Pulls Back After Stellar Jobs Report
The US dollar is losing ground against its major currency rivals to finish off the trading week. After the latest jobs report still showed a robust labor market to kick off 2019, investors will now see if the Federal Reserve will revise its âpatientâ stance and return to its aggressive path to normalizing monetary policy. According to the Bureau of Labor Statistics (BLS), the US economy added 304,000 new … “US Dollar Pulls Back After Stellar Jobs Report”
Euro Range Bound on Mixed Eurozone PMIs, Rallies on Upbeat CPI Data
The euro today traded in a tight range against the US dollar during the Asian session as market risk sentiment subsided on weak Chinese Caixin manufacturing PMI data. The EUR/USD currency pair remained range bound as several PMI prints from across the eurozone were released by IHS Markit before rallying higher on upbeat eurozone inflation … “Euro Range Bound on Mixed Eurozone PMIs, Rallies on Upbeat CPI Data”
USD/JPY one-two punched by the Fed and global growth
USD/JPY dropped mostly due to the Fed’s dovish decision. The services sector survey stands out in the first full week of February. The technical picture is becoming mixed for the pair. This was the week: Dovish Fed dominates The Federal Reserve made a significant dovish twist. They no longer foresee a gradual increase in interest rates but … “USD/JPY one-two punched by the Fed and global growth”
Britain’s Sterling Falls Following Decline of Manufacturing Index
The Great Britain pound traded widely lower today after the UK manufacturing index touched the lowest level in three months. The IHS Markit/CIPS UK manufacturing PMI dropped to 52.8 in January from 54.2 in December, touching the lowest level in three months. Analysts had predicted a higher reading of 53.5. Rob Dobson, Director at IHS Markit, which compiles the survey, commented on the result: The start of 2019 saw UK manufacturers continue their … “Britain’s Sterling Falls Following Decline of Manufacturing Index”
Swiss Franc Trades Higher Despite Underwhelming Domestic Data
The Swiss franc traded higher against most of its major peers today despite underwhelming domestic macroeconomic data. The likely reason for that was the fact that most of economic reports released in other countries were not particularly good as well. The State Secretariat for Economic affairs reported that the consumer confidence index was at -4 in January, up from -6 registered in October. The report commented on the result: Despite less favourable … “Swiss Franc Trades Higher Despite Underwhelming Domestic Data”
Yen Trades Lower After Manufacturing Index Hits 29-Month Low
The Japanese yen was soft today after the manufacturing index hit the lowest level in almost two-and-half years. The headline Nikkei Japan Manufacturing Purchasing Managers’ Index was finalized at 50.3 in January, down from 52.6 in December. While it was a better reading that analysts’ forecasts and the preliminary figure of 50.0, it was still the lowest reading in 29 months. Meanwhile, the unemployment rate edged down unexpectedly to 2.4% in December … “Yen Trades Lower After Manufacturing Index Hits 29-Month Low”
AUD Slides as China’s Caixin Manufacturing PMI Misses Expectations
The Australian dollar fell against its major peers today after the disappointing manufacturing report from China, Australia’s biggest trading partner. Macroeconomic data in Australia itself was decent, but that did not help the currency. The seasonally adjusted Caixin China Manufacturing PMI dropped to 48.3 in January from 49.7 in December. It was the lowest reading since February 2016. Analysts had predicted a much smaller decline … “AUD Slides as China’s Caixin Manufacturing PMI Misses Expectations”