Data Releases Prevented Dollar from Rising. Next, US Inflation

The job market February reports puzzled the investors and provided drivers for the next coming days. The unemployment remained unchanged at 4.1%, being perhaps the only report that did not cause any turmoil.

The NFP came at +313k, being forecast at just 205k, while in January the data was at 239k. Thus, Feb report managed to hit an 18-month high.

US hourly wages rose just by 0.1%, while it was 0.3% in Jan and forecast 0.2% in Feb. There’s some logic behind it, as the wages had been rising for two months, within not the best season for the US economy. This makes it quite likely that the Feb data show the correction of Dec and Jan stats. As for YoY, wages made +2.6% instead of 2.8% reached before, which also proves the correction is on its way.

The market was little interested in the reasons behind the lackluster wages, though, while the investors were busy assessing the indicator as such. This is quite logical, too, as slow wages growth may prevent the Fed from rate hikes. That is why the greenback was rather unstable Friday.

Today, US inflation data will be released at 13:30 GMT and can be a key factor to the next US dollar move.

The mid-term trend in EUR/USD is descending, which was caused by the price bouncing off the resistance and the local uptrend support. The new target is the major trend support at around 1.2075. In the short term, the price may break out the local resistance and head towards the upper projection channel at 1.2385. The major trend is still descending, though, and it may change only in case the major resistance is broken out, and that, in its turn, may happen only after the lows have been tested.

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.