The US dollar strengthens after data from the USA. Gold prices hit new records

On Friday, we saw good data from both the US and Canadian job markets. In both cases, unemployment fell despite analysts’ expectations. The ongoing rally of gold prices and new all-time records are in the background.

Unemployment falls in the US

On Friday, we saw data on the unemployment rate. It fell in January from 4.1% to 4.0%. It is a beautiful gift from the previous administration to the new one. However, it should be noted that the number of new jobs is lower than expected, which is not a good prognosis for the future. An hour and a half later, we saw the Michigan University Report, which, however, was less satisfactory than anticipated. The markets, nevertheless, decided that the drop in unemployment is much more significant. Following these data, the dollar strengthened against other currencies. In the case of the Polish złoty, it marked an increase of about 3 grosze and the dollar ended the week above the level of 4.06 zł.

Good data from Canada

Friday was a good day for the labor markets in North America. Canada, according to analysts, was grappling with an increase in the unemployment rate from 6.7% to 6.8% in January. In fact, however, it fell to 6.6%. The change in employment is worth noting, however. It amounted to 76 thousand, which indicates the strength of the job market there. A weaker note of these data is that less than half of the new jobs are full-time ones. After these data, the Canadian dollar even gained against the currency of its only land neighbor.

Is there a goal?

Gold is again breaking all-time records. Donald Trump’s presidency was supposed to be beneficial for the cryptocurrency market. However, they gained before the inauguration, and then caught their breath. Gold, meanwhile, continues its great run and breaks further historical records. The reason for the price increase – according to analysts – are the announced tariffs in the US. Given the strength of the current move, we cannot exclude that in the coming weeks we will be watching the approach to the psychological barrier of 3000 USD per ounce. It currently costs already 2930 USD. However, it is worth remembering that a year ago it barely exceeded 2000 USD, which shows the strength of the increases.

Today’s economic calendar lacks important readings.

Maciej Przygórzewski – chief analyst at InternetowyKantor.pl