- US NFP rose by 175,000 in April, below expectations of 243,000, following a revised increase of 315,000 in March.
- Unemployment rose slightly to 3.9%, while wage inflation slowed.
- The odds of a September cut by the Fed increased significantly.
The USD/NOK pair is trading at 10.861, registering a decline of 1.19% in Friday's session. The dollar came under downward pressure as markets now bet on increased odds of a rate cut by the Federal Reserve (Fed) in September following the weak Non-Farm Payrolls report.
The US April NFP report showed an increase of 175,000 jobs, well below market expectations of 243,000 and a decrease from the revised March figure of 315,000. This slowdown in employment growth, along with the slight increase in the unemployment rate from 3.8% to 3.9%, points to a cooling of the labor market. On the other hand, the wage inflation rate also fell from 4.1% to 3.9% annually, suggesting softer wage pressures, which may influence the Federal Reserve's approach to monetary policy. The overall result of the report, which reflects a slowdown in several key employment indicators, highlights a possible weakening of economic momentum.
This supports a more cautious approach to monetary policy, in line with the Federal Reserve's recent moves toward policy normalization and possibly setting the stage for a first cut in September that, according to CME's FedWatch tool, increased above 50%.
USD/NOK technical analysis
On the daily chart, the RSI for the USD/NOK pair has moved into negative territory. The indicator was showing a positive trend, approaching overbought conditions, but then reversed lower, indicating a downward trend. At the same time, the moving average convergence divergence (MACD) histogram shows red bars, confirming the presence of strong selling pressure.
Looking at the broader outlook, it is crucial to note that USD/NOK has taken significant steps today, falling below its 20-day SMA. However, the pair remains firmly above the 100- and 200-day SMAs. This reveals a potentially short-term bearish trend, but confirms the long-term bullish position of USD/NOK.
USD/NOK Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
