Home NewsForex Market News April non-agricultural excellent expectations, the dollar closed lower for the week and still has five reds | Anue Juheng

April non-agricultural excellent expectations, the dollar closed lower for the week and still has five reds | Anue Juheng

by WOOWinvest
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While investors are concerned about whether the Federal Reserve (Fed) will take a more aggressive approach to combat inflation, the U.S. reported better-than-expected non-farm payrolls data last month, and the U.S. dollar index fell from a 20-year high on Friday (6th) and finally closed lower , but still rose nearly 0.7% for the week, closing in the red for the fifth consecutive week.

In late New York trading, the ICE U.S. Dollar Index (DXY), which tracks the U.S. dollar against six major currencies, edged down 0.09 percent to 103.66, after hitting its highest level since the end of 2002 at 104.07, up 0.68 percent for the week.

Minneapolis Fed President Neel Kashkari said on Friday that if supply chain issues are not resolved, the Fed will be forced to raise interest rates more aggressively, putting the U.S. economy at risk of recession. He also reiterated that policymakers are still closely watching when rates will rise to neutral levels.

Concerns about the Fed’s aggressive tightening of monetary policy sparked a stock market sell-off on Thursday (5th), while the dollar was boosted by safe-haven demand, hitting a 20-year high. However, as investors digested hawkish news and some analysis The division thinks inflation may have peaked, and the dollar pared gains.

On the economic data front, the U.S. reported on Friday that nonfarm payrolls added more than expected in April, and average hourly wages rose 0.3% in April after rising 0.5% in March, bringing the annual rate down to 5.5% from 5.6% .

“The good news is that wages aren’t growing as fast as they used to, and that should help ease the market’s doubts about that, and realize that maybe inflation is peaking,” said Peter Cardillo, chief market economist at Spartan Capital Securities.

After the non-farm payroll, the next focus will be next Wednesday’s consumer price index (CPI) data. Economists polled by Reuters had expected the median annual growth rate for CPI in April to be 8.1 percent, down slightly from 8.5 percent in March.

The euro was up 0.10 percent at $1.0551, boosted by hawkish comments from the European Central Bank (ECB) official, having dipped as low as $1.0483 earlier but remained above a five-year low.

French central bank president Francois Villeroy de Galhau said the European Central Bank should raise the deposit rate to positive this year, and he supports the ECB to raise interest rates at least three times this year.

A series of sanctions against Russia, making the euro zone face difficulties such as slowing economic growth and energy supply disruptions, continued to drag the euro down. German industrial output fell 3.9% in March from the previous month, a much larger-than-expected decline, released on Friday.

Sterling was down 0.14% at $1.2337, extending losses from the previous day and hitting its lowest intraday level since June 2020. The Bank of England (BOE) has raised interest rates to the highest level since 2009, but warned the economy faces recession risks.

The dollar rose 0.29% to 130.54 yen, having closed the week above the 130 yen level.

The decline in cryptocurrencies has subsided, with bitcoin down 1.5% to $36,006 at the time of writing, and about 6% for the week, while ethereum fell 2% to $2,696.

As of Saturday (7th) Taiwan time about 6:00 Price:

The dollar index was at 103.6291. +0.0614% EUR/USD (EUR/USD) was quoted at 1.0551 USD. +0.1044% GBP/USD (GBP/USD) was quoted at $1.2337. -0.1457% The Australian dollar against the US dollar (AUD/USD) was quoted at 1 Australian dollar to 0.7077 US dollars. -0.4781% The US dollar against the Canadian dollar (USD/CAD) was quoted at 1.2905 Canadian dollars per US dollar. +0.5376% USD/JPY was quoted at 130.56 yen per dollar. +0.2688%

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