Firstly non-farm payrolls disappointment on Friday and then Easter Monday added to the negative sentiment with the Labor Market Conditions Index (LMCI), published by the Federal Reserve (Fed).
More negative hints from the labor market, one of the major focus of Fed with price stability, is adding to already sensitive markets, speculating about the time of first Spike on benchmark interest rate of Fed.
Uncertainty has been supported by speeches of respective Fed’s District Presidents. Recent came from NY Fed’s William Dudley, where he told reporters that appropriate time for Fed’ rate-hike can not be set now. “The timing of normalization will be data dependent and remains uncertain because the future evolution of the economy cannot be fully anticipated,” Dudley stated.
The Department of Labor showed on Friday, that non-farm payrolls rose 126,000 in March, following an increase of 264,000 in February. With lowered participation rate to 62.7% and Monday’s LMCI reaching -0.3%, a three-year’s low in March, negative sentiment has undermined the US dollar and brought more clouds over the rate-hike timing.
From fundamental point of view, we see mostly negative data impacting on the US dollar and bringing him under short-term selling pressure.
From technical point of view, bearish major TP remains at $1.0491, with previous support at $1.0729, or $1.0864.
As for bullish short-term bullish pressure we prefer TPs prices to be put on $1.1169 and later $1.1373.
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