On Friday, the US Dollar Index (DXY) measured against a basket of six major currencies on an average, had clocked its third straight weekly percentage gain in a row, mostly hoisted up on hopes of a solid economic rebound alongside an upbeat non-farm payroll data released earlier in the session that seemingly had illustrated a tranquil path towards recovery from the pandemic-inflicted wounds.
Money markets in UK, Europe, Australia, Hong Kong and Singapore had been closed due to the Good Friday holiday. Nonetheless, while Wall St. was also closed, US bond and currency markets remained open since the Good Friday has not been a Government holiday in the United States.
Simply put, in the day’s FX markets were largely catalysed by an upbeat US Labour Department report on March non-farm payroll data, while according to the report released earlier in the day, US non-farm payrolls soared by 916,000 jobs last month, marking up its largest gain since late-August 2020.
Apart from that, February non-farm payroll data was revised higher to 468,000 from a previous reading of 379,000, stemming prospects of a rosy landscape in US labour market.
US Dollar reports third-straight weekly percentage gain
In point of fact, market sentiments for US Dollar alongside US Treasury bond Yields have significantly improved over recent weeks, as Biden Administration’s $2 trillion-plus infrastructure-investment proposal and a countrywide acceleration in vaccination drives against the pandemic pathogen, fleshed up hopes of a jubilant re-opening of US economy.
Citing statistics, in the day’s FX market wrap-up, the US Dollar Index (DXY) measured against a basket of six major currencies on an average fell 0.3 per cent to 92.87, though had managed to secure a weekly percentage gain of 0.17 per cent, marking up its third straight weekly rise in a row, while 10-year US Treasury bond Yields were trading at 1.71 per cent after spiking to a 14-month peak of 1.77 per cent earlier in the week.
In tandem, the bloc’s common currency euro, shared among 19 member states of the euro zone, fell 0.2 per cent against the greenback to $1.1756, while the greenback gained 0.1 per cent against the safe-haven Japanese yen to 110.67 yen per Dollar.
Meanwhile, as many analysts were cashing in heavily on further upswings in the American currency amid growing investors’ bet on a solid economic recovery, referring to a robust growth in US labour market, a senior market analyst at Western Union, Joe Manimbo said, “The overall strength of the labor market is likely to prove dollar-positive.
The hiring explosion showed the economy producing some of the ‘substantial further progress’ the Federal Reserves wants to see before it pivots away from its low rate policies. ”