The week began on the right foot for the US Dollar
The US Dollar stabilized on Monday, following Friday’s job report, while the Euro weakened as talks of more sanctions on Russia for its Ukraine invasion ramped up. The Dollar Index, which tracks the greenback against a basket of currencies, is traded at 98.612.
Non-farm payrolls for March confirmed a strong economy and a tight labor market, increasing by 431,000 jobs. Moreover, the unemployment rate fell to its lowest point in two years - 3.6%.
Following these events, traders widely expect the Fed to raise the interest rate by 50 basis points next month. Bond yields reacted quickly to the news, with 2-year Treasury yields jumping close to 2.5%.
Now, investors are waiting for the Consumer Prices to be released later today. According to Bloomberg, the figures are expected to climb to an annual 61.5% in March.
The EUR/USD pair traded at 1.1044, driven by fresh sanctions on Moscow. Ukraine accused Russian forces of war crimes in Bucha. Russia’s defense ministry denied the accusations.
Christine Lambrecht, the German Defense Minister, said that the EU should discuss ending the Russian gas imports – a move that would significantly impact the Eurozone. Russia supplies about 40% of Europe’s gas needs.
Sources: investing.com, reuters.com