Is the Dollar Overvalued?

Exchange Rates’ Weak Response to Strong Employment Report Hints at Overvalued Dollar The January U.S. employment report showed 304,000 jobs added. By beating markets’ expectations of only 170,000 jobs by 134,000 jobs, it is one of the biggest employment surprises in several years. The dollar, however, exhibited atypically small responses against the other major floating currencies (the yen, pound, and euro), and this adds some support to our view that the dollar has more downside than upside potential in 2019.