Analysts at BNP Paribas explained that yhe labour market conditions clearly support another rate increase. Key Quotes: "In January, the unemployment rate dropped below 5% (to 4.9%) and wage growth was relatively strong (+0.3% for production and non-supervisory employees). Contrasting with survey data, the manufacturing sector not only added jobs (+29kfor the month), but also the number of hours worked increased. The upturn in the index of aggregated hours in January (+0.5%) could foreshadow a rebound in manufacturing activity. Two factors lend credibility to this hypothesis: the strong increase in overtime work (+2.4%) and the “new orders” component of the ISM index (+2.7 points to 51.5, the highest score since summer 2015)." For more information, read our latest forex news.