Want a reason to get long USD? You know, besides widening rate differentials?
Well how about a better average hourly earnings print in Friday’s February jobs report? That would probably help buoy the greenback.
Recall that the average hourly earnings number was the most talked about part of the January jobs report. Indeed, many a market observer pointed to weak AHE as “proof” that the Fed wouldn’t/couldn’t/shouldn’t hike in March. So much for that, right?
Anyway, Bloomberg’s Chris Anstey thinks you should likewise pay attention to AHE this morning – especially if you’re trading FX. I’d also ask that you think back to what I said last month about AHE and the greenback.
Via Bloomberg
Friday’s U.S. payrolls report might have little bearing on next week’s Federal Reserve decision, after top officials clearly indicated readiness to raise rates March 15. But it still has power to sway the outlook thereafter –especially for 2018 and 2019 in the “dot plot.”
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