US dollar still down, but off lows, after better-than-expected jobs data
The U.S. dollar was down on Friday but trimmed some losses against the euro and yen after data showed the world's largest economy added more new jobs than expected last month, reflecting a labor market that remained on stable footing.
The report reinforced expectations that the Federal Reserve will hold interest rates steady for the next few meetings and not cut them until probably the summer.
U.S. data showed nonfarm payrolls increased by 177,000 jobs last month after rising by a downwardly revised 185,000 in March. Economists polled by Reuters had forecast 130,000 jobs added last month after a previously reported 228,000 gains in March.
The report, however, does not reflect the full impact of the tariffs imposed on the so-called Liberation Day on April 2. Economists expect jobs growth to slow or even contract in the coming months once the fallout from the punitive tariffs is taken into account.
Following the jobs report, the dollar cut some of its losses against the yen, still trading lower on the day. It was last down 0.6% at 144.52 yen . The euro, meanwhile, pared gains versus the greenback, still trading higher at $1.1326 , up 0.3%.
The U.S. rate futures market trimmed bets that the Fed will cut rates as soon as June, after the payrolls data, giving it a 50% probability. That was down from about a 60% chance before the report's release. Overall, the market has reduced the size of rate cuts being priced in to 85 basis points (bps), or about three rate reductions of 25 bps each. Over the last few days, rate futures had factored in about 100 bps of easing.
Source : Reuters
