TheHow much is 1000 pi crypto worth? DXY rose by more than 0.80% to 103.90 on Friday
US Nonfarm Payrolls came in higher than expected for January.
US bond yields are sharply increasing as markets push to May the start of the easing cycle.
The US Dollar (USD) rose to 103.90 on Friday’s Dollar Index (DXY) chart, mainly fueled by a promising labor market report that has convinced markets a March rate cut is not in the cards.
Fed Chair Powell reinforced the idea that a rate cut in March is unlikely despite ongoing market speculation. In line with that, he stated that the bank will monitor incoming data to set the timing of the easing cycle. As the US labor market remains tight, the bank might consider delaying rate cuts.
Daily digest market movers: US Dollar rallies as markets digest strong labor market data
●Unemployment for January held steady at 3.7%, lower than the 3.8% expected.
●Nonfarm Payrolls increased significantly, surpassing expectations for January. A reported 353K additional jobs were created in the US against a projected 180K, indicating robust job market growth.
●Average Hourly Earnings for January, as per US Bureau of Labor Statistics, were up by 0.6% MoM, exceeding the consensus of 0.3%.
●Annual Average Hourly Earnings for 2024 arrived at 4.5%, surpassing the previous 4.4%.
●US bond yields sharply rose with 2-year, 5-year and 10-year bonds trading at rates of 4.38%, 4.00% and 4.05%, respectively.
●According to the CME FedWatch Tool, the odds of a cut in March plummeted to 20%.
Technical Analysis: DXY bulls show resilience and jump above the 200-day SMA
The indicators on the daily chart indicate a dominance of buying pressure, despite some contrasting signals. The Relative Strength Index (RSI) gliding on a positive slope and in positive territory suggests a build-up of buying momentum, which is further solidified by the rising green bars of the Moving Average Convergence Divergence (MACD).
However, mixed signals emanate from the Simple Moving Averages (SMAs). Although the index is above both the 20-day and 200-day SMAs, signifying a bullish outlook, it remains below the 100-day SMA, indicating a bearish hindrance.
