On Wednesday, data revealed that employers added 818,000 fewer jobs in the year ending in March 2024 than initially believed, sending the dollar to its lowest point in more than a year against the euro and sterling.
The market was confused and there was some choppy trading due to the data being released later than the planned 1000 EDT time. Traders will be listening closely to Fed Chair Jerome Powell’s remarks at the Jackson Hole economic symposium on Friday at the Kansas City Fed for any new insights into his perspective on the labour market and whether or not he refers to the data from Wednesday.
The size of the anticipated rate cut next month and whether or not borrowing costs will likely be lowered at each subsequent Fed meeting are two things that the markets, in particular, are hoping for clarity on.
It got easier for the Fed to cut rates now and through year-end but I don’t think it makes a strong case for 50 basis points,” said Adam Button, chief currency analyst at ForexLive in Toronto. We know that it was a year of solid economic growth, that company profits were fine and that the economy grew at a good clip for the year ending in March,” Button said.
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