Jump to content

Next test for the USD as market awaits jobs data

Recommended Posts

The dollar could be tested later this week with the release of US jobs data, including the ADP employment change on Wednesday.

Written by: Angela Barnes | Financial presenter/producer, London
Publication date: 

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.



This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • I have not been a fan of either of exchanges and wallets native tokens but would wanna explore it now. I took interest from the current hype around BNB, OKB and BGB. These tokens particularly BNB and BGB has shown strength which is obviously due to increase in demand to take part in the most of the launchpool. BNB rose almost 80% in the past 1 year, BGB was on the spotlight with about 190% in a year. OKB may not be left out due to it's potential but has made any significant movement recently. Wallet tokens on the hand have also been doing well but may not be compared to Centralized exchanges imho; I have also monitored few wallet particularly trust wallet and C98 wallet. My best guess is we could be seeing the wallet tokens making impressive price action as we approach post halving due to increase in transactions and I wonder if any one here is considering the prospect BWB token for Bitget wallet. Launching pretty soon and airdrop participation in play. I would appreciate your speculative opinion on it potentials.
    • In the realm of cryptocurrency exchanges, playing by the rules isn’t just a suggestion—it’s a must for staying in the game. Most major centralized exchanges (CEXs) strive to adhere to these regulations, implementing measures to prevent money laundering and illicit activities. However, a recent controversy has emerged with BingX, a top CEX, defying US sanctions by allowing Iranian users full access to its platform. BingX facilitates Iranian Rial trading, directly violating US sanctions. They allow Iranian users to trade cryptocurrencies without KYC verification. This, along with offering peer-to-peer (P2P) transactions using Iranian fiat currency, further raises red flags. This incident is reminiscent of the past troubles faced by giants like Binance, who were caught facilitating transactions for sanctioned individuals, resulting in a $4.5 billion plea deal with US authorities in 2023. The question remains: will this defiance by BingX lead to its downfall? Regulatory bodies in the US, like the SEC or DOJ, might take action.However, the severity of the situation raises questions about the long-term viability of the exchange and whether it may face the prospect of closure or severe penalties for its actions. As governments grapple with the complexities of digital assets, CEXs that prioritize expansion over compliance will likely face increasing scrutiny and potential consequences.  
    • The exchange continues to offers it's  users significant opportunities through its ecosystem products like PoolX and Launchpool. By participating in these platforms, users can benefit from various services such as staking, liquidity mining, and accessing new project opportunities. PoolX enables users to stake their assets and earn rewards through flexible investment options. Launchpool provides users with the chance to participate in early-stage project offerings. Overall, engaging with Bitget ecosystem products can diversify investment portfolios and facilitate exposure to new and promising projects in the crypto space.
  • Create New...