U.S. Dollar Advances As June Rate Cut Hopes Fade After Strong Jobs Data

U.S. Dollar Advances As June Rate Cut Hopes Fade After Strong Jobs Data

The U.S. dollar moved higher against its major counterparts in the New York session on Friday, as strong-than-expected jobs data for March dampened hopes of imminent interest rate cuts by the Federal Reserve.

Data from the Labor Department showed that non-farm payroll employment spiked by 303,000 jobs in March after surging by a downwardly revised 270,000 jobs in February.

Economists had expected employment to jump by 200,000 jobs compared to the addition of 275,000 jobs originally reported for the previous month.

The unemployment rate edged down to 3.8 percent in March from 3.9 percent in February, while economists had expected the unemployment rate to come in unchanged.

Treasury yields rose following the report, with the yield on the benchmark ten-year note touching 4.36 percent.

Traders lowered expectations for an interest rate cut in June and now see only about 56 percent chance of a 25 basis point reduction.

Comments from Minneapolis Fed President Neel Kashkari suggesting the possibility of no interest-rate cuts this year pushed the dollar higher in the previous session.

Kashkari said that he has penciled two rate cuts this year, but none may be required if inflation continues to stall.

The greenback climbed to 2-day highs of 1.0791 against the euro and 1.2573 against the pound, from yesterday\'s closing values of 1.0836 and 1.2642, respectively. The greenback is seen finding resistance around 1.05 against the euro and 1.23 against the pound.

The greenback firmed to 2-day highs of 0.6549 against the aussie and 0.5985 against the kiwi, from yesterday\'s close of 0.6587 and 0.6025, respectively. The greenback is poised to challenge resistance around 0.64 against the aussie and 0.585 against the kiwi.

The greenback touched 1.3647 against the loonie, its highest level since November 27. At yesterday\'s close, the pair was quoted at 1.3542. The greenback is likely to face resistance around the 1.37 region.

The greenback edged up to 0.9070 against the franc, reversing from a 1-week low of 0.9002 it logged in the Asian session. The pair had closed Thursday\'s deals at 0.9013. Should the greenback strengthens further, it is likely to test resistance around the 0.92 region.

The greenback rose to 151.75 against the yen, from a fresh 2-week low of 150.80 seen in the Asian session. At Thursday\'s close, the pair was valued at 151.33. Next key resistance for the greenback is likely seen around the 153.00 level.

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