The US jobs report deepens dollar retreat

Expert market comment from senior analyst Alex Kuptsikevich of the FxPro Analyst Team: The US jobs report deepens dollar retreat
FxPro | 686 dagar sedan

Finally, US data came out so weak that the market could celebrate. The US labour market added 150k jobs in October after 297k (revised from 336k) and expected 180k. The unemployment rate unexpectedly rose from 3.8% to 3.9% despite the share of the economically active population falling from 62.8% to 62.7%. Wage growth slowed from 4.3% to 4.1%, the lowest over two years.

It was the perfect report to confirm that America is slowing down enough to justify a halt in interest rate hikes while not feeling bad enough to say a recession is coming.

This report is the perfect combination for risk demand in the short term. The labour market continues to create jobs at the pace of a healthy economy. At the same time, wage growth is slowing, not accelerating. The rising unemployment rate reflects increased interest in finding a new job.

This combination has reinforced expectations that inflation is on the path to normalisation and that the central bank will not need to tighten policy again. It is only necessary to wait for the effect of the already implemented increases and not to press the pedal of monetary tightening extremely hard.

Reduced chances of further rate hikes in December played against the dollar. On Friday, the dollar index fell to its lowest level in six weeks. Friday's sharp decline sets us up to see a switch to a more classic correction pattern with a pullback to the 61.8% or 104 level from the initial rally from 99 to 107 after a month of staying within the 76.4% correction with support above 105.2.

By the FxPro Analyst Team 

 

 

FxPro
Typ: NDD
Förordning: FCA (UK), SCB (The Bahamas)
read more
US100, USDCHF, EURUSD

US100, USDCHF, EURUSD

US Core PCE data could shake US100 after its record-breaking rally; SNB steady: No rate change expected as USDCHF eyes recovery; Eurozone PMIs: EURUSD dips as growth shows signs of life
XM Group | 22 minuter sedan
USD/JPY Soars as Yen Weakens on BoJ Policy Concerns

USD/JPY Soars as Yen Weakens on BoJ Policy Concerns

The USD/JPY pair climbed to 148.31 on Monday, extending its gains from the previous week as the US dollar strengthened across the board. The yen faced additional pressure from heightened anticipation around upcoming comments from Federal Reserve officials and the release of critical US inflation data.
RoboForex | 32 minuter sedan
Precious Metals Shine, FX Eyes Policy Outlook | 22nd September 2025

Precious Metals Shine, FX Eyes Policy Outlook | 22nd September 2025

Silver surged past $43.00 to 14-year highs, while gold steadied above $3,650 on Fed easing bets. Oil climbed above $63.20 amid geopolitical risks, AUD regained footing after RBA’s cautious tone, and EUR/USD slipped toward 1.1700 ahead of Eurozone confidence data. Central bank guidance remains the key driver this week.
Moneta Markets | 3h 35minuter sedan
Dollar extends gains, BoE and BoJ stand pat

Dollar extends gains, BoE and BoJ stand pat

Dollar continues the post-Fed advance - Initial jobless claims slide, validating Fed’s confidence - BoE stands pat, slows pace of quantitative tightening - BoJ appears hawkish, rate hike speculation increases
XM Group | 3 dagar sedan