 Tools for TradersTop Movers | Heat Map | Pivot Point | Pivot Meters | Action Bias | Volatility Charts Action InsightMid-Day Report: Dollar Fails to Ride on Stellar 313k NFP Growth, Sluggish Wage Drags Despite stellar report of job growth, Dollar fails to secure upside momentum so far due to sluggish wage growth. Non-farm payrolls report showed 313k growth in February, much better than expectation of 205k. Prior month's figure was also revised up from 200k to 239k. Unemployment rate was unchanged at 4.1%, above expectation 4.0%. Most disappointingly, average hourly earnings rose 0.1% mom only, below expectation of 0.2% mom, slowed from prior months 0.3% mom. The set of data is a repeat of the mystery that many Fed officials have pointed out. That is, strong job growth exists without wage pressure. The report does nothing to secure the chance of a fourth hike by Fed this year. ECB Surprisingly Removed Easing Bias, Draghi Downplayed The Implication On Future Policy Surprising to most market participants, ECB dropped the easing bias in the forward guidance. While this had initially sent the euro slightly higher, it reversed as President Mario Draghi reinforced that the act was 'backward looking' and would not affect future monetary decision making. Policymakers remained confident over the growth outlook but again raised concern over weak inflation. As such, the updated economic projections saw upgrades in the growth but downgrades on inflation outlook. Going forward, the focus is on the tapering process of ECB's asset purchases which stay at a monthly pace of 30B euro. Meanwhile, ECB's forward guidance would gradually focus more on the interest rate path, and its relations with inflation. Technical OutlookEUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.2257; (P) 1.2351 (R1) 1.2406; More.... EUR/USD dips in early US session but is still staying above 1.2268 minor support. Intraday bias remains neutral at this point. On the downside, break of 1.2268 will argue that fall from 1.2555 is likely resuming. And intraday bias will be turned back to the downside for 1.2154 support and below. Om the upside, above 1.24455 will turn bias to the upside for retesting 1.2555 key resistance. Suggested ReadingsU.S and Canada Payrolls Strong GBPJPY Trades in Narrow Range; Bullish Move is Expected Yntil 148.50 Sentiment Soothed as Trump Agrees to Meet Jong Un; NFP Eyed Dollar Enjoys Support from Risk appetite ahead of NFP Report; European Stocks Weaker Euro Slips On Draghi's Dovish Tone USDJPY Rebound From The Bottom Of The Descending Channel Forex Analysis: Why Is Bitcoin Falling? Yen Falls As Possible US-North Korea Talks Spur Risk Appetite, US Jobs Report Firmly In Focus Economic Data
|
 |
| |
