The US dollar is at the lows of the week following the February non-farm payrolls report. The headline number was strong at +275K compared to +200K but underneath were some soft details. For starters, the prior two reports were revised collectively lower by 167,000 jobs, leaving total jobs lower than anticipated.
The household survey also continues to point to softness with unemployment rising to a post-pandemic high of 3.9% compared to 3.7% expected.
The market also shifted to price in more rate cuts after wage growth slowed to 0.1% m/m compared to 0.3% expected. In addition, the jarring +0.6% reading from January was revised down to +0.5%.
The result was market pricing shifting to 100 bps in Fed cuts this year from 95 bps. The US dollar fell across the board with EUR/USD climbing to 1.0982 from 1.0942 before giving a bit back.
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The moves were similar across the board and gold rose to a record high of $2176. The equity market also cheered the prospect of rate cuts with S&P 500 futures up 13 points compared to a slight loss before the report.