US Dollar Rebounds: Powell’s Speech in Focus
The US Dollar Index (DXY) has recovered some of its losses, rallying after a strong Nonfarm Payrolls (NFP) report. Traders now await Federal Reserve Chairman Jerome Powell’s speech, which could set the tone for upcoming monetary policy decisions.
Meanwhile, China retaliates against US tariffs with a hefty 34% tariff on all US goods, raising questions about potential further escalations. The US Dollar Index is back above 102.00, aiming for a strong weekly close.
Jobs Data Smashes Expectations
March’s NFP report delivered a major upside surprise with 228,000 new jobs, easily beating the 135,000 forecast. The unemployment rate ticked up slightly to 4.2%, but overall, the data paints a picture of a strong labor market.
Key Employment Data:
Nonfarm Payrolls: 228,000 (vs. 135,000 expected, 151,000 in February)
Average Hourly Earnings: 0.3% (unchanged)
Unemployment Rate: 4.2% (vs. 4.1% prior)
With solid job numbers, the Fed’s response will be crucial for market direction.
Trump’s Trade War: Pharma in the Crosshairs?
Speaking aboard Air Force One, President Donald Trump hinted that the pharmaceutical sector could be next in line for tariffs, sending shockwaves through the industry.
Meanwhile, global stock markets are struggling:
European markets drop 3%-4%
US equities slide 2%
Trade tensions continue to weigh heavily on sentiment.
Fed Speeches Could Shake Markets
Several key Fed officials will be speaking today, with Jerome Powell’s speech at 15:25 GMT taking center stage.
Other notable appearances:
Michael Barr (16:00 GMT): AI & Banking
Chris Waller (16:45 GMT): Payments
Expect volatility as markets react to Fed commentary.
Interest Rate Bets: Cuts on the Horizon?
According to the CME FedWatch Tool:
May’s meeting: 68.1% chance rates stay at 4.25%-4.50%
June’s meeting: 92.6% probability of a rate cut
Meanwhile, the 10-year Treasury yield is sliding, touching 3.94%, a fresh five-month low.
Can the US Dollar Hold Above 102.00?
With the DXY pushing past 102.00, traders are watching to see if the rally can hold.
Key risks ahead:
Dovish Fed signals could weigh on the dollar
Escalating trade tensions might fuel market uncertainty
Stock market weakness could drive investors toward safe havens.
Market at a Crossroads
The next few days will be crucial as Powell’s speech, trade tensions, and interest rate bets shape sentiment.
What to Watch:
1. Powell’s speech – Will he push back on rate cut expectations?
2. US-China trade war – Will other nations retaliate?
3. Bond yields – Will they keep sliding?
Volatility is here to stay. Buckle up for more market surprises!
https://voiceoftraders.com/analysis/eurusd-corrects-as-usd-rebounds-amid-market-jitters
