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Greenback Buoyed By Stellar Jobs Report, Neutral Fed

FOREX
  • The greenback outperformed most others in G10 Friday, following a better-than-expected jobs report. The US added 379k jobs vs. Exp. 200k and the unemployment rate unexpectedly dropped. This firmed the dollar across the board, prompting the USD index to rally to the best levels since late November last year.
  • The greenback was further firmed by more less-than-dovish commentary from the Fed. Both Bullard and Kashkari appeared unperturbed by the recent volatility in US real yields, forcing markets to further accept that the Fed may not provide further monetary accommodation as soon as March's Fed meeting. The media blackout period begins Saturday evening.
  • Elsewhere, commodity-tied FX traded particularly well, with NOK and CAD firmer after WTI and Brent crude futures extended their OPEC+ inspired rally. NOK/SEK traded above parity for the first time since early 2020.
  • Focus in the coming week turns to US CPI / PPI metrics, the Canadian jobs report and the ECB rate decision.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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