Weekly EURUSD, GBPUSD, USDJPY Forex Analysis February 06 – February 13, 2023
The NFP printed a giant 517K jobs figure vs forecasts of only 193K. The unemployment rate fell to the lowest in 54 years at 3.4%, while wage growth also surprised higher. The ISM Services PMI also delivered a massive surprise late on Friday, coming in at 55.2 compared to forecasts of 50.5. Obviously, the US economy is still far from encountering any big setbacks or slowdown in activity. All of this was a massive surprise for the Fx market, which has been lately positioning for a weakening dollar. It looks like a squeeze on those short USD positions has now been triggered, which means the dollar can rebound further in the near term.