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USD soars amid jobs data
The American dollar decided it was a bird and took off sharply! This happened after the release of December’s jobs report, which turned out to be far better than anticipated. These figures confirmed the resilience of the US labor market.
In December 2024, US nonfarm payrolls rose by 256,000, crushing the forecast of 165,000. However, November’s results were slightly downgraded to 212,000 from 227,000.
Analysts noted that the average hourly wage in America grew by 0.3% month-on-month and 3.9% year-on-year, slightly below the 4.0% annual forecast. On top of that, unemployment in the United States unexpectedly dropped to 4.1% from 4.2%.
The stronger-than-expected macroeconomic data lifted market sentiment, boosting confidence that the Federal Reserve will not rush to cut rates in 2025. This stance made the greenback even stronger.
Currently, market participants expect the Fed to hold off on rate cuts until October, with only one policy easing likely in 2025. Against this backdrop, the euro/dollar pair fell to a two-year low of 1.0225, while the US dollar index jumped to highs recorded in November 2022, hitting the level of 109.91 before pulling back slightly.
Published 15 January 2025
© InstaFintech Group
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© InstaFintech Group
