There were no major data release from Eurozone yesterday. The dollar fell on Monday, pressured by data showing persistently low wages that will likely constrain the U.S. Federal Reserve from raising interest rates more than three times this year. Friday’s non-farm payrolls report showed U.S. job gains for February were much higher than expected, but wage inflation, a closely watched indicator by the Fed, remained subdued. “Mixed messages on America’s labour market last week largely offset and, importantly, failed to move the dial in favour of faster rate hikes from the Fed,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
“To excite the dollar and move the needle for the Fed to raise rates at a quicker pace, wage growth would need to move above 3 percent,” he added. Average hourly earnings edged up four cents, or 0.1 percent, to $26.75 in February, a slowdown from the 0.3 percent rise in January. That lowered the year-on-year increase in average hourly earnings to 2.6 percent from 2.8 percent in January.
There will be no major data releases from Eurozone tomorrow. In the US session CPI figures will be released. Analysts predict 0.2% increase.
Figures to watch:
CPI (Tuesday 14:30)