By Matthew Ryan, Head of Market Strategy Ebury International Payments Company

Today’s data on new jobs excluding the agricultural sector are yet another proof of deceleration to job market of the US.

Only 22,000 net jobs were added last month, and only 107,000 seats have been created in the last four months. This is the worst performance, except for the Covid Pandemic period, for almost fifteen years.

The debate on whether this deceleration is mainly due to supply or demand factors will continue. However, for Fed, it relates to both demand and supply, and this means that reductions interest rates are inevitable. The big question now is not whether the Fed will reduce in September (this is considered almost certain), but whether it will reduce interest rates at all three meetings by the end of the year.

With the officials already hinting that they are willing to ignore anybody Temporary Increases of Inflation where are caused by dutiesthis not only seems more and more likely, but already has almost completely incorporated by purchases. This is a clear downward signal for the dollar, which has so far receded against almost every currency worldwide.