After the revisions (to December and November), the headline was more or less in line with the consensus. |
Assuming that the correlation between interest rates and the dollar does not break down again soon, it suggests that the dollar will remain supported, at least over the short-term. |
But even more important for the dollar was the average hourly earnings reading, which is quite hawkish and is something the Fed has said it's concerned about. |
Overall this latest outturn is consistent with the recent favorable trend in consumer sentiment and would suggest solid gains in retail sales in the coming months. |
The attraction of carry trades is in decline, a lot of people will be wary of going into the Icelandic crown. |
The reaction is not surprising. The expectations were skewed to the upside. |