After the disappointing Non-Farm Payrolls only temporarily hurt the US dollar, the greenback received two more blows.
The ISM Non-Manufacturing PMI, which is usually a hint towards the NFP, was released 90 minutes afterward, and missed expectations: a fall from 57.4 to 55.9, below 57.6 that was expected. The employment component actually advanced and it proved to be unreliable as an indicator.
The other hit came from Patrick Harker, the president of the Philadelphia Fed. He said that two hikes are appropriate in 2018 and that is lower than 3 hikes that are suggested by the dot plot that the Fed released in its December decision.
EUR/USD was already falling to 1.2025, more than reversing the post-NFP gain, and is now climbing back up.
Will the greenback remain pressured? The main event is still the NFP: a miss on the headline with only 148K and wages that are not going anywhere, stuck at 2.5% for seemingly forever, should be enough to keep the dollar down regardless of the other figures.
More: EUR/USD: up to 1.25 or first to 1.10? Two opinions