The Fed held interest rates steady and indicated that a March rate cut is unlikely, boosting the DXY’s rally. However, the upside could be limited as labour market conditions soften. Recent labor market data in the US showed a slowdown in labor cost growth, indicating easing inflationary pressures and potentially opening the door for future interest rate cuts by the Federal Reserve.
The ADP Research Institute's report also revealed a smaller-than-expected increase of 107,000 jobs in January, accompanied by a deceleration in wage growth. These developments provide the Fed with added flexibility to adjust monetary policy, particularly amidst concerns of softer labor market conditions.
The ADP Research Institute's report also revealed a smaller-than-expected increase of 107,000 jobs in January, accompanied by a deceleration in wage growth. These developments provide the Fed with added flexibility to adjust monetary policy, particularly amidst concerns of softer labor market conditions.