FOREX
The US dollar is holding firm in relation to other major currencies as Monday trading gets underway in Europe. US employment data, which was released on Friday, revealed that the number of new jobs created in January almost doubled in relation to December. Average hourly earnings were also above expectations, in what was by any measure a massive surprise to the upside. It is therefore not surprising to see the dollar gaining ground in relation to its peers. After last week’s Fed meeting many investors felt reassured that the central bank would pause rate hikes and even cut before the end of the year. However, after the release of such surprisingly strong job numbers the likelihood of the Fed pivoting any time soon has decreased, in a scenario that creates scope for further dollar strength.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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