Next test for the USD as market awaits jobs data
The dollar could be tested later this week with the release of US jobs data, including the ADP employment change on Wednesday.
US private businesses are forecast to have hired 150,000 workers in February, after 107,000 job creations in January. Also on Wednesday, there will be JOLTs job openings. The number of job openings is thought to have dropped to 8.895 million in January, 131,000 fewer than in December. On Friday, Non-farm payrolls. Early expectations are for 200,000 job creations. Last month, the US economy added 353,000 jobs in January, after an upwardly revised 333,000 in December, and way above market forecasts of 180,000.
(AI Video Summary)
The US Dollar
This week, there will be important news about jobs in the United States that could affect the value of the USD. On Wednesday, there will be two reports called the ADP employment change and the Jolt's job openings. The Automatic Data Processing (ADP) employment change will show how many people were hired by private businesses in February. In January, there were 107,000 new jobs created, and the forecast for February is 150,000 new jobs. The Jolt's job openings report will show how many job openings there were in January compared to December. It is expected that there will be a decrease of 131,000 job openings.
Non-farm payrolls data
Then on Friday, there will be a report called the non-farm payrolls data. This report will give an early estimate of how many jobs were created in February. In January, the US economy added 353,000 jobs, which was better than what people expected. The forecast for February is 200,000 new jobs. All of these job reports are important because they can give us clues about what the Federal Reserve might do with interest rates, which can affect the value of the US dollar.
The Federal Reserve
Right now, the US dollar is down a little bit, about 0.02%. Traders are watching closely what Jerome Powell, the Chair of the Federal Reserve, says when he speaks to Congress. They are also watching the jobs data. All of this information will help traders understand what the Federal Reserve might do with interest rates, this in turn can affect how strong or weak the US dollar is compared to other currencies.
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