The dollar slipped to a fresh four-month low of 103.46, as weaker-than-expected job numbers added to a series of disappointing U.S. data releases, raising concerns about an economic slowdown. At the same time, this has kept expectations for rate cuts unchanged, with markets currently pricing in three cuts. However, a rate cut in March is highly unlikely, as Federal Reserve policymakers have repeatedly stated they want to see sustained progress in easing inflation before cutting rates.
Nonfarm payrolls increased by a seasonally adjusted 151,000 in the month, and the unemployment rate edged higher to 4.1%. Wage inflation softened, with average hourly earnings rising by 0.3%, as expected, while the annual increase of 4% was lower than the 4.2% forecast.
Traders are now cautiously awaiting Federal Reserve Chair Jerome Powell’s upcoming speech at 11 pm IST, looking for his reaction to the Trump tariffs, stagflation risks, and the recent economic data, as it may provide policy clues ahead of the FOMC meeting on March 18-19.
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