Strong US jobs data left Fed doves scratching their heads [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

Surprise! The US economy added more than 250’000 new nonfarm jobs last month, the unemployment rate fell to 4.1% and wages grew faster than expected both on monthly and on a yearly basis. On a yearly basis, the US workers earned 4% more on average compared to a year ago. On top, the strikes at the US ports were paused until mid January and the goods are being moved until further notice.

The US treasuries got heavily sold off on Friday, the US dollar jumped, the EURUSD slipped below 1.10, Cable fell to 1.3070 and the USDJPY rallied past the 148 level.

The US dollar is better bid at the start of this week, but the US inflation report due Thursday could temper some of this bullish momentum. The US headline inflation is expected to have further eased from 2.5% to 2.3% in September. But core inflation is still above the 3% mark.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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