The dollar index (DXY00) this morning is down by -0.26% and posted a 7-week low. The dollar is under pressure after today’s U.S. Feb unemployment report bolstered expectations for the Fed to begin cutting interest rates by the June FOMC meeting. Today’s fall in the 10-year T-note yield to a 5-week low is also bearish for the dollar. In addition, today’s rally in the S&P 500 to a new record high reduces liquidity demand for the dollar.
U.S. Feb nonfarm payrolls rose +275,000, stronger than expectations of +200,000. However, Jan payrolls were revised downward to +229,000 from the previously reported +353,000. The Feb unemployment rate rose +0.2 to a 2-year high of 3.9%, showing a weaker labor market than expectations of no change at 3.7%.
