The U.S. nonfarm payrolls are likely to have risen respectably in the month of February. According to a TD Economics research report, nonfarm payrolls are expected to have risen 175k, recording a rate slightly lower than the six-month average trend. The jobless rate is expected to have stabilized at 4.1 percent though unrounded figures should show a fall.
All eyes are on average hourly earnings after the January upside surprise that left wage growth tracking at 2.9 percent year-on-year. With the 12th of the month landing on a Monday, calendar effects are favorable in February for a solid 0.3 percent sequential print. But there is scope for disappointment as monthly readings have a high tendency to mean revert, while any wage rises in responses to tax reform are likely insignificant in the aggregate.
“We expect a 0.2 percent m/m increase, leaving the y/y pace lower at 2.7 percent vs 2.9 percent. Downward revisions cannot be excluded as well, which point to further downside risk to the y/y figure”, added TD Economics.
At 21:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -14.012. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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