US Dollar Forecast - Prices, Charts, and Analysis

• NFPs beat forecasts at 216k, unemployment rate unchanged versus November.
• US dollar rallies, Treasury yields rise, gold slides.

The latest US Jobs Report (NFPs) beat market forecasts by a margin, coming in at216k against forecasts of 170k. The November report saw a revision lower from 199k to 173k. Average hourly earnings m/m stayed unchanged at 0.4%, while the annual figure rose to 4.1% against a prior reading of 4% and expectations of 3.9%. The unemployment rate remained unchanged at 3.7%.

The US dollar rallied further post-release with the US dollar index printing a 103.13 high after opening the session at 102.37.

US Dollar Index

The latest CME FedWatch Tool now shows a near 50/50 chance of a rate cut in March, down from over 73% one week ago.

CME FedWatch Tool

Gold touched a post-release low of $2,025/oz. after opening the session at $2,048/oz. on the back of changing rate expectations.

Gold Price Latest: XAU/USD Seeks Guidance from US NFP Release

Gold Daily Price Chart

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What is your view on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

https://www.dailyfx.com/news/us-dollar-jumps-gold-slumps-as-us-nfps-come-in-higher-than-forecast-20240105.html