The Weekly Wrap – Russia Drives Dollar Demand as Riskier Assets Sink
Out of the U.S
Private sector PMIs and nonfarm payrolls were the key stats of the week.
In February, the ISM Manufacturing PMI rose from 57.6 to 58.6, while the Non-Manufacturing PMI fell from 59.9 to 56.5.
While the services PMI disappointed, nonfarm payrolls jumped by 678k in February. As a result of another marked increase in hiring, the unemployment rate fell from 4.0% to 3.8%.
FED monetary policy was in focus on Wednesday, with FED Chair Powell delivering testimony on Capitol Hill. Talk of a more cautious move later this month spurred demand for riskier assets. Powell told lawmakers: “there are events yet to come and we don’t know what the real effect on the U.S. economy will be.” The FED Chair reportedly added that he favored a 25-basis point rate hike in March and then larger and more frequent rate hikes if needed.
In the week ending 4th March, the Dollar Spot Index surged by 2.10% to end the week at 98.648. In the week…
