US jobs data was strong in December, but wage growth slowed, while service sector activity fell into contraction territory for the first time in more than two years, and the data helped to reinforcing expectations that the Federal Reserve will raise interest rates by just a meter next month,dollar indexIt fell more than 1% on Friday (6), but still finished higher in the first week of this year. Non-US currencies collectively rebounded.
ICE, which tracks the dollar against six major currencies, in late US trade dollar index (DXY extension) fell 1.08% to 103.90, up 0.4% on the week.
US nonfarm jobs in December were 223,000, higher than the 200,000 forecast by economists, and last month’s wage increase was slightly slower than in November. The monthly growth rate fell from 0, 4% to 0.3% and the annual growth rate fell from 4.8% slowed down to 4.6%.
Mazen Issa, senior foreign exchange analyst at TD Securities, said the slowdown in wage growth is encouraging, but there are also hawkish factors in these data, namely an unexpected drop in the unemployment rate and an unexpected increase in the participation rate. at work Still size 2 does not help.
On the same day, the United States announced that the ISM non-manufacturing index fell into the contraction range in December, falling sharply from 56.5 in November to 49.6, which is the first time since May 2020 that it fell below the 50 water line, indicating it accounts for more than two-thirds of the US economy Industry is shrinking and US factory orders fell more-than-expected in November.
Atlanta Federal Reserve Bank President Raphael Bostic said on Friday that the latest jobs data is another sign that the US economy is gradually slowing and that if the situation persists, the Fed could cut interest rate hikes to 1 meter at the next meeting.
Richmond Federal Reserve Bank Chairman Barkin (Thomas Barkin) also believes that the Fed will raise interest rates by a smaller margin, which will help limit the damage to the economy.
Following the release of the economic data, traders in federal funds futures have increased their bets that the Fed will raise interest rates by one point at the end of its next meeting, to 27%.
Next, investors’ attention will turn to the US December Consumer Price Index (CPI) report next Thursday (12). The market expects overall inflation growth to remain unchanged and the Core CPI will increase 0.3% MoM.
As the dollar fell,EURIt rebounded nearly 1.2% to $1.0644, recouping yesterday’s dip, and the single-day increase was the largest since Nov. 11, but it’s still down 0.5 this week %;GBPIt also rose 1.6% to $1.2097, which was flat for the week.
Commodity currencies also rose sharply,Australian dollarAndstring sourceBoth increased by 1.9%, of which,Australian dollarclosed up nearly 1% this week.New ZelandWeekly apartment.
US dollar vsJPYDepreciated 1% to 132.07 JPYthe weekly line is still up 0.7%.
Starting around 6:00 Taiwan Time Saturday (7) Price:
- dollar indexCall 103.9020. -1.1655%
- EURExchange rate against the US dollar (EUR/USD) 1 EURAgainst $1.0644. +1.1691%
- GBPExchange rate against USD (GBP/USD) 1 GBPAgainst $1.2097. +1.5872%
- Australian dollarExchange rate against the US dollar (AUD/USD) 1 Australian dollarAgainst $0.6880. +1.8957%
- US dollar vsCanadian dollars (USD/CAD) quoted 1 US dollar at 1.3443 Canadian dollars。-0.9213%
- US dollar vsJPY (USD/JPY) quoted 1 US dollar at 132.05 JPY。-1.0194%
