- Analytics
- News and Tools
- Market News
- There is a prospect of higher USD carry than previously assumed – Commerzbank
There is a prospect of higher USD carry than previously assumed – Commerzbank
US Dollar clings to last week's recovery gains on the back of the impressive January jobs report on Friday. Economists at Commerzbank expect the greenback to remain on a solid foot.
Gleanings from the US labour market report
“Instead of the 200K jobs created expected by analysts it turned out to be approx. 500K, instead of a rise in the unemployment rate to 3.6% we saw a fall to 3.4%. Combined with the recent rise in the number of job vacancies this provides an image of a US labor market that is heavily overheating.”
“So far – let us not delude ourselves – a considerable part of the USD valuation was based on the fact that in the US capital was particularly profitable thanks to a labor force that did not even dream of maternity laws, sick or holiday pay. If this were to change due to a long-term shortage of labor, part of the attractiveness of USD would be lost. However, these are medium- to long-term considerations.”
“For now, the USD bulls are happy about the prospect that the Fed will hardly have to consider the real-economic consequences of a more restrictive monetary policy in view of such a strong labor market. And that means: there is a prospect of higher USD carry than previously assumed.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
