Today’s markets analysis on
The dollar extended losses for a fourth straight session on Wednesday ahead of the January employment report. Recent data cast doubt on the strength of domestic demand. The latest retail sales reading showed no monthly growth, missing expectations for a moderate increase and signaling that consumers may be adopting a more cautious approach. If this cooling trend persists, it could reinforce expectations of monetary easing later in the year, weighing on both the dollar and treasury yields.
While the ADP employment gauge improved modestly from its prior reading, the focus remains on the nonfarm payrolls release. Markets expect job creation to pick up to around 70,000 from December’s 50,000, while the unemployment rate is projected to hold at 4.4%. A downside surprise would amplify concerns that labor market momentum is fading alongside softer consumption, potentially triggering renewed pressure on US assets.
Still, the cautious comments from Federal Reserve officials could act as a counterweight and limit losses for the dollar. Dallas Fed President Lorie Logan signaled confidence that further cuts might not be needed, while Cleveland Fed President Beth Hammack suggested the central bank can afford to remain on hold for an extended period.
Zaid Barem / ymm
Türkçe
العربية
English
Deutsch
Ελληνικά
עִבְרִית
Русский
Українська
