Strong NFP Data Lifts Dollar, Markets Grow Confident of "Higher for Longer"
The dollar index edged higher above 100 on Friday after stronger-than-expected US jobs data reinforced expectations that the Federal Reserve will keep interest rates high for longer. Non-farm payrolls rose by 178,000 in March, the strongest increase since late 2024, while the unemployment rate unexpectedly fell to 4.3% amid a decline in labor force participation.
The data series signaled a stable labor market even as the conflict in Iran escalates, limiting the scope for an imminent interest rate cut. At the same time, geopolitical tensions remain in focus after President Donald Trump escalated his rhetoric against Iran and threatened attacks on key infrastructure, along with reports of further attacks in the Gulf region.
Rising energy prices are adding to inflation concerns and keeping market participants cautious. Liquidity is expected to be thin due to the Good Friday holiday, with US equity markets closed and bond trading operating on a shortened schedule—conditions that can amplify price movements despite reduced volume. The next focus will be on energy price dynamics, conflict developments, and the release of inflation data and signals from Fed officials regarding the balance of growth-inflation risks. (gn)
Source: Newsmaker.id
