The currency recovered on the day after payroll data in the United States, but registered its first week in the red in a month.
He dollar globally appreciated on Friday, after it was learned that American employers hired many more workers than expected in March, which could delay the interest rate cuts planned by the Federal Reserve for this year.
The Labor Department reported that nonfarm payrolls increased by 303,000 jobs last month. Economists polled by Reuters had forecast 200,000 jobs, with estimates ranging from 150,000 to 250,000. US rate futures reduced the odds of a cut in June to 54.5% after the report was published, according to the tool FedWatch from CME Group.
He dollar index It gained 0.048%, to 104.27 units. The US currency has had a turbulent week, falling from five-month highs to two-week lows, after an unexpected slowdown in services growth in USA will support expectations that the Fed will lower rates.
“It certainly reduces rate cut expectations. You can see that the market is already pricing in for after September. This should continue to support the strength of the dollar overall,” said Brad Bechtel, global head of foreign exchange at Jeffries.
Investors have pulled back on their expectations of how much the Fed could cut rates this year, with two cuts now expected in 2024. However, the Fed’s continued strength economyalong with the rise in prices of raw materials such as oil, copper, coffee and cocoa, is complicating the outlook for the inflation.
He and in It fell 0.14% to 151,540 units and the Japanese authorities have continued to press against the increase in rates. On the other hand, the euro was stable at $1.0837, and the pound fell 0.04% to $1.264.
Investors are cautious about the evolution of the situation in Middle Eastafter the American president, Joe Bidenthreatened on Thursday to condition its support for the Israeli offensive in Loop to the adoption of concrete measures to protect humanitarian workers and the civilian population.
Source: Ambito
