The US Unemployment Rate for February rose to 3.9% from 3.7%, countering a positive payrolls gain, which weighed on the Dollar. Despite the US economy adding 275,000 jobs in February, surpassing January’s 229,000 and beating the estimated 200,000, the Average Hourly Earnings saw a decline. Additionally, revised lower employment gains in December and January hinted at a cooling labor market, reinforcing expectations of a Federal Reserve rate cut.
The Dollar continued its downward trajectory, extending its decline in the face of a mixed US Employment report. The increase in the US Unemployment Rate heightened speculation that the Federal Reserve might implement a 0.25% rate cut in June.
Treasury bond yields eased further, with the 10-year rate settling at 4.07% (down from 4.09% on Friday), marking its lowest close in a month. Market participants anticipate additional selling pressure on the Greenback today. However, a potential short-covering rally could emerge, stemming from excessively bearish Dollar positions. The market remains watchful for further developments.
