US Dollar stabilizes lower after upbeat NFP print

The US dollar was expected to end the week at a significant loss, but on Friday it recovered some of its losses after the US Jobs report for February revealed an increase in unemployment and businesses’ reluctance to pay more for labour force.

As of this writing, the US Dollar Index is down 0.21% and trading below 103.00, specifically around 102.577. It is expected to end the week in the mid-102.00s.

With one more leg down, the dollar is locking in its sixth straight day of losses. This time, the US Jobs Report served as the impetus for the shift; while the Nonfarm Payrolls number was a welcome surprise, the dollar was tripped by the substantial downward revision of the prior figure.

As soon as traders realized that both the unemployment rate and the average hourly wage were suggesting a contraction, they threw caution to the wind.

Everything is finished for this week in terms of data. Although it has been a crucial week with the US Challenger Job Cuts, the weekly Jobless Claims, and now this Jobs Report confirming that the tide is changing for the US, markets can now let the data settle.

The US Federal Reserve now has a window of opportunity to lower interest rates during one of its sessions after March.