The greenback recoups losses over positive non-farm payroll data

The market is seemingly still on a correction course over an anticipation of the lowering of interest rates by the ECB. Furthermore, the latest core CPI data for the Eurozone showed a fall from 3.6% to 3.4%, reinforcing the bet that the ECB will soon ease monetary policy. Meanwhile, the central bank has indicated that it shall be conducting a stress test pertaining to the response in the event of a cyber-attack in order to assess the resilience of commercial banks. Eurozone retail sales, the Sentix investor confidence survey and the consumer confidence report also for the Eurozone are due while German data include factory orders and trade balance figures. The fibre is currently trading at 1.0940, being pressured down by a strengthening USD.

Non-farm payroll data last week revealed that 216K jobs had been added to the US economy last December. While these figures demonstrate the strength of the US job market, they also cast some shadows over the successful impact of interest rate cuts by the Federal Reserve on the economy, if jobs and hence wages remain high which could contribute to higher inflation. The Consumer credit change report is due today. Updated treasury yields shall be published as the 3-month and 6-month bill auctions will be taking place in the course of the day. The greenback is currently trading at 102.43 against peers.