Dollar Strengthens Against Euro, Recovers Losses Versus Yen After U.S. Jobs Data
The U.S. dollar gained ground against the euro and trimmed earlier losses against the yen on Friday, following the release of stronger-than-expected non-farm payrolls data for March.The U.S. economy added 228,000 jobs last month, significantly outperforming the revised figure of 117,000 jobs for February, according to the Labor Department. Despite the robust employment numbers, the dollar’s reaction remained moderate as investors kept a cautious eye on the potential fallout from new trade tariffs.
FX Market Reaction:
Uto Shinohara, a senior investment strategist at Mesirow Currency Management, noted that although the job data exceeded expectations, currency movements remained muted. “The markets are more focused on tariff-related risks, as China’s retaliatory measures have stirred recession fears,” Shinohara explained.
Earlier on Friday, China announced new tariffs of 34% on U.S. imports, marking the most significant escalation yet in the trade conflict with the Trump administration. The announcement sparked concerns of a global economic downturn, pushing risk-sensitive currencies like the Australian dollar lower while bolstering safe-haven assets such as the Swiss franc.
Currency Highlights:
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Euro/USD: Down 0.21% at $1.103
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USD/JPY: Down 0.29% at 145.67
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Dollar Index: Up 0.93% at 102.742
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AUD/USD: Down 3.26% at $0.6121
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GBP/USD: Down 0.74% at $1.30
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USD/CAD: Up 0.78% at 1.4206
Despite the upbeat jobs report, ongoing trade tensions are keeping investors on edge. With heightened volatility in the FX market, analysts advise caution as geopolitical factors continue to weigh heavily on currency movements.
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