The dollar rose against a basket of the other major currencies on Friday, shrugging off disappointing U.S. employment data as investors remained focused on the Federal Reserve’s plans to tighten monetary policy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.47% to 101.08, the most since March 15 late Friday.
The index rose 0.9% for the week, its second consecutive weekly gain.
The Labor Department reported on Friday that the U.S. economy added just 98,000 jobs last month, the fewest since last May and well below the forecast for jobs growth of 180,000.
Lower temperatures and winter storms accounted for the slowdown in hiring.
The unemployment rate ticked down to a 10-year low of 4.5%, pointing to underlying strength in the labor market.
The dollar initially sold off following the release of the weaker-than-anticipated employment data before regaining ground.
The dollar remained supported after New York Fed President William Dudley said on Friday that plans to trim the Fed’s balance sheet later this year would prompt only a “little pause” in its rate hike plans.
Demand for the dollar was also underpinned by some safe haven demand in the wake of U.S. cruise missile strikes on a Syrian air base.
The safe haven yen, which initially gained on the back of the Syria strike was lower late Friday, with USD/JPY up 0.26% at 111.09.
The euro was lower against the dollar, with EUR/USD down 0.5% at 1.0590.
Sterling was also lower, with GBP/USD falling 0.82% to 1.2366 after data showing that UK industrial output unexpectedly fell in February.
Another report showed that Britain’s trade hit the widest since September 2016 in February, adding to concerns over the economic outlook as the economic headwinds from Brexit pick up.
In the week ahead, investors will be eyeing Monday’s speech by Fed Chair Janet Yellen for fresh cues on the timing of the next U.S. rate hike and plans to trim the bank’s balance sheet.
Traders will also be looking ahead to Friday’s U.S. data on retail sales and inflation ahead of the long Easter weekend.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 10
Fed Chair Janet Yellen is to speak at the University of Michigan.
Tuesday, April 11
Australia is to release private sector data on business confidence.
The U.K. is to release what will be a closely watched report on consumer price inflation.
The ZEW Institute is to report on German economic sentiment.
Wednesday, April 12
China is to release figures on consumer and producer price inflation.
The UK is to release its monthly employment report.
The Bank of Canada is to announce its benchmark interest rate and publish a policy statement outlining economic conditions and the factors affecting the policy decision. The announcement is to be followed by a press conference.
Thursday, April 13
Australia is to produce its monthly employment report.
China is to publish trade figures.
Canada is to report on manufacturing sales and new house price inflation.
The U.S. is to release reports on producer price inflation, jobless claims and consumer sentiment.
Friday, April 14
Financial markets in Australia, New Zealand, Europe and Canada will be closed for the Good Friday holiday.
The U.S. is to round up the week with data on consumer price inflation and retail sales.
