USD continues its charge

Market reports
Thanim Islam
  • US jobs numbers erase rate cut expectations
  • Fed Powell sees danger in cutting rates early
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The USD surged on Friday following a whopping January jobs report, which has wiped 30 bps off the amount of rate cuts expected by the Fed this year. March rate cut projections also dropped to a 17% chance. GBPUSD fell to the bottom of its trading range, and EURUSD is now at the lowest since mid December. USD has gained a bit more this morning after Fed Powell told CBS’s 60 Minutes that he sees danger in cutting interest rates too soon.


Market rates

*Daily move - against G10 rates at 7:30am, 05.02.24

** Indicative rates - interbank rates at 7:30am, 05.02.24

Table - 2024-02-05T092941.623

Data points

Table - 2024-02-05T092943.737


  • None today.

Our thoughts

Demand for the USD has continued this morning following the comments from Fed Powell yesterday, and we look to see if GBPUSD can break to the downside of its sideways range, and for EURUSD we will look to see if the December range can be tested. PMI numbers from across the UK, EU, and US are all due today but as these are final revisions, impact on FX could be limited. The ISM services number however could add to further USD demand, should we see a rise to 52 as expected by markets.

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