The expected data of the week came today at 16.30(GMT+3). Let’s look at the details in the US Non-Farm Employment Report;

• Change in Non-Farm Employment: 311,000 (Previous: 504,000)
• Unemployment Rate: 3.6% (Previous: 3.4%)
• Average Hourly Earnings (monthly): 0.2% (Previous: 0.3%)
• Average Hourly Earnings (annual): 4.6% (Previous: 0.3%)

Although the data seems mixed on the headline and bottom side, it shows that the US employment market remains strong. The US dollar is weakening initially due to weaker hourly earnings, but the increase is still continuing and is close to the US full employment level.

While the US 10-year bond yield fell to 3.81%, the EURUSD parity reacted to 1.0620. Ounce Gold is at 1842 levels.

Inflation in Germany was 8.7% on an annual basis in February. There was no regression on an annual basis. On a monthly basis, the data was 0.8%. Inflation for January was 1%.

German inflation remains unchanged and still remains at high levels.

The Central Bank of Japan did not change the policy rate at its meeting this morning and continued its desire to keep the 10-year bond at 0.5%.

President Kuroda held his last press conference before leaving office. The highlights of the speeches were:

• Will not hesitate to relax further if necessary.
• Large monetary incentives helped stimulate the economy.
• It is a pity that the 2% inflation target in the last 10 years could not be sustained sustainably.

Kuroda concluded the meeting by saying “I did everything that had to be done”.

Ueda will be the new head of the Bank of Japan.