Jobs and Dollar reinforcement

Today’s Jobs numbers are all about wage inflation. Should there be more pressure on the costs of hiring the Fed will tend to look more hawkish at its next meeting. This would help confirm the assumption that the US can be an outlier and raise rates as other central banks lower theirs. It would be interesting to see the effect on the dollar, which has been creeping back from its lows in February against a basket of currencies.

​In March the ECB is expected to come out with more stimulus measures, possibly taking the lending rate deeper into negative territory. Increasing concerns in Japan have many thinking measures will have to be stepped up with the BoJ this year as well. If these measures hold true and the US does remain the outlier in the disinflationary pressures plaguing the global economy, the dollar index is sure to surge. But at what level is the stronger dollar going to slow growth?