On Wednesday, data revealed that employers added 818,000 fewer jobs in the year ending in March 2024 than initially believed, sending the dollar to its lowest point in more than a year against the euro and sterling.
Due to the data’s delayed release compared to its planned 1000 EDT time, trading was erratic and the market became confused.
It implies that the labour market was not as robust as the Federal Reserve thought at the time and has been expressing. However, Vassili Serebriakov, an FX strategist at UBS in New York, says the implications for the forward outlook are less evident.
This aligns with the Fed’s decision to start lowering interest rates. It’s more difficult to interpret, though, in terms of the easing rate and other specifics,” he continued.
Traders will be listening closely to Fed Chair Jerome Powell’s remarks at the Jackson Hole economic symposium on Friday at the Kansas City Fed for any new insights into his perspective on the labour market and whether or not he makes reference to the data from Wednesday.
The size of the anticipated rate cut next month and whether or not borrowing costs will likely be lowered at each subsequent Fed meeting are two things that the markets, particularly, are hoping for clarity on.
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