News Tech: The dollar rose on Friday, aided by strong US employment growth in March, confirming market expectations that the Federal Reserve will accelerate the pace of rate hikes to curb rising inflation. The nonfarm payrolls report showed that 431,000 new jobs were added last month, against an estimate of 490,000, with February’s job growth data revised upwards. The unemployment rate he dropped to 3.6%, the lowest level since February 2020.
“Another strong signal supports expectations of two or more mega rate hikes by the Fed in the coming months, adding momentum to boost the dollar,” said Karl Schamotta, chief market strategist at Copay. Futures contracts related to Federal Reserve interest rates fell after the jobs report, as the Federal Reserve hikes rates by 0.5% at each of its next three meetings, with price pressures It suggests the expectation of delivering a decisive blow.
“Global risk sentiment continues to deteriorate, with the U.S. dollar strengthening as hopes of a ceasefire in Ukraine fade,” Shamotta said. Failing to find support from the rally, it hit another record high, putting pressure on the European Central Bank (ECB) to contain runaway prices. “As long as eurozone inflation continues to tighten, I think the ECB will likely wait until this quarter to see how the bloc copes with the shocks from the war in Ukraine, but the ECB will continue to borrow.