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07.12.2018 05:56 PM
What is waiting for the dollar? How does negative employment data affect currency?

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The dollar began to fail and will end the week with a fall. The alarming comments by the head of the Fed, the inversion of the yield curve of US government bonds, and now also the slowdown in the growth of employment and monthly wages. New data suggest a decline in economic activity, which may be a reason for the Fed not to rush to raising interest rates next year.

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Although the dollar index versus the basket of major currencies declined, in general, there was no large-scale collapse, even with such tremendous pressure on the currency. Concerns about the recession and the subsequent recession are growing, and if the market gives way to panic, the situation can get out of control. Experts note that the weakest in the last 8 months the rate of employment in the non-agricultural sector may be due to earlier than usual cold weather and lack of qualified personnel. Unemployment remains unchanged, at the 49-year low of 3.7 percent. Average hourly earnings in November rose by only 6 cents, or 0.2 percent after they rose 0.1 percent in October. Wage growth was moderate, despite the fact that the Internet giant Amazon has increased the minimum wage to $ 15 per hour due to tighter labor market conditions. Companies also cut working hours. The average working week was reduced to 34.4 hours from 34.5 hours in October. The employment report may increase concerns about the health of the economy and reduce the likelihood of the Fed raising interest rates next year. The December increase, these data are likely to not affect.

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Irina Maksimova,
InstaForex के विश्लेषणात्मक विशेषज्ञ
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