The US jobs report is out, and NFP was stronger, but the unemployment rate was higher and wages were lower than expectations.
However, what is perhaps more of a concern is the banking sector as cracks in the banks capital are starting to show as interest rates soar, depressing values of their bond portfolios.
That has the Silicone Value Bank under pressure and flight to safety flows into US treasuries.
Will the change in the calculus influence the Fed as well? Will they hold off on a 50 bp hike?
The USD is lower, and rates are sharply lower as markets think softer Fed might be warranted.
The charts and technical levels will help to tell the story. In this morning Forex technical report, I outline the levels for the EURUSD, USDJPY, GBPUSD, and USDCAD.
