Dollar rebounds after U.S. jobs report beats expectations, euro eases
New York (Reuters) – The U.S. dollar rose sharply against the euro and trimmed losses against the yen on Friday, after U.S. nonfarm payrolls data showed the economy created more jobs than expected in March.
The U.S. economy created 228,000 jobs in March, surpassing the 117,000 jobs added in February, the Labor Department said.
The euro eased 0.21 percent against the dollar to $1.103. Meanwhile, the greenback pared losses against the yen, trading 0.29 percent lower at 145.67 yen.
Tariffs' Impact on FX Markets
Uto Shinohara, senior investment strategist at Mesirow Currency Management, said that despite the US non-farm payrolls beating expectations, the dollar remained relatively flat as markets focused on tariff-related factors.
China has imposed an additional 34% tariff on US goods, escalating its trade war with President Donald Trump and raising investor fears of a recession. This has created huge volatility in global equity markets.
"The FX market has seen increased volatility due to concerns about tariffs, with China's strong response to US measures. This has caused the Australian dollar, which is considered a high-risk currency, to fall sharply, while the Swiss franc, a safe-haven currency, has risen," Shinohara said.
Currency and Market Data
At 01:16 GMT on April 4, the trading levels of some currencies were recorded as follows:
- US Dollar Index (DXY): 102.18, up 0.18% from the previous session
- EUR/USD: 1.1031, down 0.18%
- USD/JPY: 145.36, down 0.42%
- GBP/USD: 1.3103, down 0.74%
- AUD/USD: 0.6121, down 3.26%
- EUR/CHF: 0.9387, down 1.11%
Forex Market Outlook
The US jobs report had a limited impact on the forex market, as uncertainties surrounding the trade war and tariffs continued to dominate investor sentiment. The latest tariff decisions from China have sent investors off risk, weighing on the Australian dollar, while the US dollar has maintained a slight recovery.
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