Dollar significantly strengthened after the publication of optimistic data on US employment

The dollar strengthened against the yen after the publication of strong data on employment and production in the United States. However, one should not lose sight of the cautious attitude of the Fed regarding future monetary policy and a noticeable decline in activity in Asian markets during the Lunar New Year celebrations. Both factors will restrain further growth of the American currency.

In addition, the optimism of Wall Street, caused by a sharp increase in jobs in the United States, was suppressed by weaker than expected forecasts from Amazon.com. In general, the key points for the markets this week will be the remaining reports on the profits of American corporations and how they will correspond to the latest optimistic data. Also, we should not forget about political events, especially the confrontation between the US and China, which are still potential risk factors.

After reviving the market against the backdrop of growing risk appetite, there will be important data and statements by the speakers saying that it is necessary to find a delicate balance between data improvement and the neutral tone of central banks. The Federal Reserve promises to be cautious about further raising interest rates, which signals a possible completion of a tightening policy cycle. Meanwhile, the dollar holds the title of leader and there is no compelling reason to worry about a possible recession.