The US non-farm payrolls data for December significantly exceeded market expectations, triggering a chain reaction in the global capital market.
The market had hoped that the US dollar would temporarily pull back, but this hope was dashed. Data showed that the number of non-farm payrolls in December increased by 256,000, far higher than the expected 165,000, and even exceeded the 210,000 in the previous month. This shows that the US economy has not shown signs of slowing down, but has shown an accelerated growth trend, and the possibility of the Fed's interest rate cut has been further delayed. Financial institutions such as JPMorgan Chase and Goldman Sachs have adjusted their forecasts for the timing of interest rate cuts.
After the data was released, the US dollar index continued to climb, once hitting a high of 109.9, and is expected to break through the 110-point mark in the short term, setting a new high in recent years. Against the backdrop of a stronger US dollar, global asset markets are generally under pressure, including the US stock market, bond market, foreign exchange market, cryptocurrency and commodities.
The current market performance is closely related to the recent international political situation, especially the tough stance of the United States in the economy and military, which may create conditions for the return of an important political figure. Before January 20, the market may face significant fluctuations, and then it may gradually recover from the lows to welcome the new round of market brought by the return of the politician.
As far as the cryptocurrency market is concerned, it may experience relatively large fluctuations from now to January 20. Although some assets have rebounded from oversold levels, the market outlook in the short term remains unclear. Whether cryptocurrencies can develop independently in the future is worthy of close attention by investors. During this period, risk and position management are particularly important to prevent major losses during the market adjustment period.