U.S. Job Gains Buoy Dollar as China, UK Face Economic Struggles
-
U.S. employment data significantly exceeded expectations, leading markets to pull back from anticipating imminent Fed rate cuts. The dollar rebounded on the news.
-
China faces economic headwinds from producer price deflation, stock declines, and the Lunar New Year holiday. Supportive policy measures have had little effect.
-
Bank of Japan likely to exit negative interest rate policy this year despite little compelling economic justification to do so yet.
-
UK rate cut expectations have risen with the market pricing in 4 cuts by year-end. However, upcoming economic data unlikely to further shift expectations.
-
Several central banks have meetings next week including Australia, Mexico and others, but additional policy shifts look unlikely in near term.