The U.S. dollar index fell by 0.35% on Friday, pressured by disappointing economic data, including a surprising decline of 92,000 in February nonfarm payrolls, which was expected to rise by 55,000. The February unemployment rate also unexpectedly increased to 4.4%, up from 4.3%. Meanwhile, January retail sales decreased by 0.2%, slightly better than the projected 0.3% decline.
Comments from Federal Reserve officials supported the dollar’s position amid falling equity markets. Fed Governor Christopher Waller stated that the ongoing conflict in Iran is unlikely to trigger sustained inflation. The Fed is currently anticipated to maintain interest rates at mildly restrictive levels for an extended period, with swaps markets indicating only a 5% chance of a rate cut during the upcoming March FOMC meeting.
In commodities, gold prices rose by 1.58% to close at $80.00, driven by increased demand for safe assets amid geopolitical tensions and inflation concerns. Similarly, silver gained 2.59%, although its upward momentum was counterbalanced by bearish economic revisions in the Eurozone, which reduced demand for industrial metals. The Eurozone’s Q4 GDP growth was revised down to 0.2% q/q from the previously reported 0.3%.
