The US dollar gained ground in European trade against a basket of rivals, maintaining gains for the second straight session and moving in a positive zone.

Recent strong US labor data curtailed the odds of a Fed interest rate cut in June, with investors now awaiting US inflation data later this week to have a better picture.

The Price

The dollar index rose 0.15% to 104.44 today, with a session-low at 104.25.

The dollar index closed up 0.1% on Friday, the first profit in four days away from a two-week trough at 103.92, following excellent US labor data.

US Treasury Yields

US 10-year treasury yields rallied 0.9% today to a five-month high at 4.454%, boosting investments in the dollar.

The developments come following strong US labor data, which showed the economy added far more jobs than expected last month.

US Labor Sector

The US economy added 303 thousand new jobs in March, beating estimates of 212 thousand.

The unemployment rate fell to 3.8% from 3.9% in February, while average earnings rose to 3.0%.

Such data showed the US economy ended the first quarter on solid ground, and will likely delay the dates of upcoming Fed interest rate cuts.

US Rates

Following the data, the odds of a Fed interest rate cut at the June policy meeting tumbled from 60% to 48%.

Now investors await crucial US inflation data later this week, which could change the odds of future policy moves by the Fed.