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US Dollar Rises Early Friday Ahead of March Employment Report, Fed Official Appearances
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US Dollar Rises Early Friday Ahead of March Employment Report, Fed Official Appearances
Apr 5, 2024 4:59 AM

07:40 AM EDT, 04/05/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Friday before the release of the March employment report at 8:30 am ET.

Nonfarm payrolls are expected to rise by 214,000 after a 275,000 gain in the previous month, while the unemployment rate is forecast to decline to 3.8% from 3.9%. Hourly earnings are expected to rise by 0.3% after a 0.1% gain in February.

Later in the day, the St. Louis Federal Reserve is expected to update its gross domestic product Nowcast estimate for Q1 around midday, followed by the release of consumer credit usage data for February at 3:00 pm ET.

Boston Fed President Susan Collins is schedule to speak at 8:30 am ET, followed by Richmond Fed President Tom Barkin at 9:15 am ET and Fed Governor Michelle Bowman at 12:15 pm ET. Barkin and Bowman vote on the policy setting Federal Open Market Committee this year, while Collins next votes in 2025.

In comments Thursday, Fed officials continued to cast more doubt on the prospects for near-term rate cuts. They pressed the argument for patience to wait for more information and Minneapolis Fed President Neel Kashkari, who next votes in 2026, suggested the FOMC may not be able to lower rates at all this year if inflation stalls.

A quick summary of foreign exchange activity heading into Friday:

EUR-USD fell to 1.0831 from 1.0838 at the Thursday US close and 1.0861 at the same time Thursday morning. Eurozone retail sales fell in February while its construction purchasing managers' index moved further below the breakeven point that indicated contraction in March, data released earlier Friday showed. The next European Central Bank meeting is scheduled for April 11.

GBP-USD fell to 1.2631 from 1.2643 at the Thursday US close and 1.2659 at the same time Thursday morning. UK home prices declined unexpectedly in March, pulling the year-over-year growth pace lower, while UK construction PMI moved back above the breakeven point to now indicate expansion, data released earlier Friday showed. The next Bank of England meeting is scheduled for May 9.

USD-JPY rose to 151.3852 from 151.3501 at the Thursday US close but was below a level of 151.6887 at the same time Thursday morning. Japanese household spending rebounded in February after a January decline while the Japanese leading index rose sharply in February, data released overnight showed. The next Bank of Japan meeting is scheduled for April 25-26.

USD-CAD rose to 1.3558 from 1.3544 at the Thursday US close and 1.3499 at the same time Thursday morning. Canadian employment data for March is scheduled to be released at 8:30 am ET, at the same time as the US employment report. Canadian IVEY PMI for March, a measure of business activity, is scheduled to be released at 10:00 am ET. The next Bank of Canada meeting is set for April 10.

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