addition of 170,000 jobs

As of February 7, 2025, the U.S. Bureau of Labor Statistics released the January 2025 Non-Farm Payrolls (NFP) report, indicating an addition of 170,000 jobs, a decrease from December's 256,000. The unemployment rate remained at 4.1%. Economists had anticipated this slowdown, attributing it to factors such as wildfires in California and cold weather conditions, which were estimated to have reduced employment by approximately 40,000 jobs, particularly in sectors like accommodation, food services, and construction.

The report also included annual benchmark revisions, adjusting employment, hours, and earnings data from the establishment survey to reflect updated seasonal adjustment factors. These revisions can affect data as far back as April 2023.

In the forex market, the U.S. dollar experienced a decline against the Japanese yen, reaching an eight-week low. This movement was influenced by diminishing concerns over a global trade war and strong Japanese wage data, which bolstered expectations of potential Bank of Japan interest rate hikes. The dollar also hovered near a one-month low against the British pound, reflecting shifting market sentiments.

Additionally, the Indian rupee strengthened to 87.46 against the U.S. dollar, a 0.1% increase, ahead of the Reserve Bank of India's (RBI) monetary policy announcement. The RBI is anticipated to cut policy rates by 25 basis points, marking the first reduction in nearly five years. This expectation, along with persistent portfolio outflows and high dollar bids, had previously pushed the rupee to a lifetime low of 87.5825 earlier in the week.

These developments highlight the dynamic interplay between economic indicators and currency valuations in the global forex market.