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Dollar rebounds ahead of jobs data, Middle East tensions linger

The U.S. dollar clawed back lost ground on Friday, with the Dollar Index (DXY) rising to 104.30 by 06:30 GMT as traders awaited the highly-anticipated March nonfarm payrolls report. Economists forecast the data to show …

The U.S. dollar clawed back lost ground on Friday, with the Dollar Index (DXY) rising to 104.30 by 06:30 GMT as traders awaited the highly-anticipated March nonfarm payrolls report. Economists forecast the data to show 200,000 jobs were added last month, providing insight into the Federal Reserve’s policy path.

Comments from Minneapolis Fed President Kashkari that rate cuts may be avoided if disinflation continues to stall underpinned the dollar’s rebound. Looming inflation figures next week will also help shape markets’ view on the Fed’s April 30-May 1 and June 11-12 meetings against the backdrop of data dependency.

Gold loses shine after 7-day rally ahead of US jobs data
Safe-haven demand sees yellow metal retreat from record highs before key employment figures.

Across the Pacific, the Japanese yen recouped losses versus the greenback, hitting a two-week peak. Demand for the safe-haven currency surged amid escalating Middle East conflict risks and maintained verbal intervention threats. Finance Minister Suzuki reiterated readiness for action to curb excessive yen declines, while BOJ Governor Ueda warned of potential policy responses if yen moves impact inflation and wages.

Fueling yen haven flows, U.S. President Biden threatened to condition military support for Israel’s Gaza offensive on protecting civilians and aid workers, stoking fears of wider regional turmoil.

With investors awaiting the U.S. jobs report for directional cues, most other major currencies remained relatively range-bound on Friday.


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