The published Friday report of nonfarm payrolls was quite positive for the U. S. dollar. The number of the people employed in the nonfarm sector increased by 235 000, and the number of the ones employed in the private nonfarm sector increased by 227 000, and that exceeded all expectations. The jobless rate decreased from 4.8% to 4.7%, and the average hourly earnings rose by 0.2%, and this is also pretty good. After the reporting publication, the futures for the interest rate rise in the USA at the March meeting to be held on March 15-17 was as high as 95%. Despite all the positive data, the dollar began to sink in relation to the main currencies, the EUR/USD pair reached a point of 1.07 at the close of the American session, and a daily rise in the euro against the dollar reached more than 1%. We believe that such trend was caused by the profit taking carried out by investors, as well as knocking out stop loss positions of traders who immediately began to buy dollars after the reporting publication.
We recommend using the rise in the euro for its further sales, as well as closing positions on Wednesday before the publication of the interest rate decision of the FOMC. As we remember that the U.S. Federal Reserve was verbally going to raise the interest rates before each FOMC meeting, but in fact, this constantly postponed it in 2016, there was only one instead of four rises promised in 2016. So it cannot be excluded that the interest rates will remain at the same level at the March meeting, and it can cause the weakening of the dollar. Even if the interest rates are raised, the strengthening of the dollar should not be expected as the investors' attention will be focused on the performance of the Chairman of the U.S. Federal Reserve J. Yellen during which she should hint at the term of the next increase in the interest rates.