Dollar bulls were hesitant to take the driver’s seat on Friday, despite US Non-Farm payrolls exceeding market expectations by rising 196k in March.
With payrolls rebounding in March and unemployment holding steady at 3.8% – a near 49 year low, fears over the US economy are likely to ease. However, markets were clearly more concerned with wage growth which disappointed by slowing 0.1% mom, below expectations of 0.3%. Sluggish wage growth suggests that inflation is likely to remain muted which will inevitably fuel speculation over the Federal Reserve cutting interest rates in the distant future.
Taking a look at the technical picture, the Dollar Index dipped following the US jobs report. With the data seen as a mixed bag, the DXY is likely to swing back and forth into the weekend. If bulls do end up making a late appearance, the Dollar Index has the potential to challenge 97.50.
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