05.04.2024
Dollar rallies in anticipation of US jobs data
05.04.2024
Mirjan Hipolito
Cryptocurrency and stock expert

​After plunging on Thursday, the dollar regained some of its lost ground against global currencies on Friday, ahead of the release of US employment data. 

The US Dollar Index (DXY), which tracks the greenback against a basket of global currencies, was up 0.05% at 104.25. 

Officials, including Fed Chairman Jerome Powell, continue to stress the need for more discussion and data before cutting interest rates, Reuters reported. 

"The lack of consistent communication from the Fed means that data dependency remains," said Charu Chanana, Head of FX Strategy at Saxo. 

Contrary to the dollar's strength, the USD/JPY was down 0.04% at 151.26 as fresh warnings from Japanese authorities lent support to the yen. 

Japanese Finance Minister Shunichi Suzuki expressed the government's willingness to take all necessary measures to stabilize the yen. 

Kazuo Ueda, Governor of the Bank of Japan, also reiterated the central bank's readiness to adjust monetary policy if the yen's decline has a negative impact on the country's economy. In addition, Ueda warned of a possible rise in inflation due to wage increases, signaling another interest rate hike by the Bank of Japan. 

The EUR/USD and GBP/USD fell 0.03% and 0.13% to 1.0835 and 1.2624, respectively. 

Traders turned their attention to today's US employment report. 200,000 jobs are expected to have been created in March. 

"Markets are likely to be sensitive to any surprises in the employment data as they try to gauge its impact on monetary policy," said Charu Chanana. 

AUD/USD and NZD/USD were down 0.12% and 0.13% to 0.6579 and 0.6016, respectively. 

Meanwhile, the USD/CNY remained stable, trading at 7.2337. 

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