DXY: Dollar Index Wobbles Near 104.00 as Traders Brace for Key Jobs Report

Illustration by TradingView

US economy is expected to show job growth of 189,000 for March. Any surprises may stir things up.

Key Points:

  • Dollar index calm ahead of jobs data.
  • March NFP to show 189,000 new hires.
  • Dollar stays flat against rival currencies.
  • The dollar index DXY was seeking direction Friday morning after zig-zagging for most of the week so far. The gauge, measuring the dollar’s strength against six rival currencies, hit a weekly high of 105.08 but then pulled back to a weekly low of 103.90. In early deals today, DXY was gravitating toward 104.33 as forex traders anticipated the nonfarm payrolls for March.
  • The NFPs, for short, are expected to show US employers tapped 189,000 new hires over the past month. If so, the figure would indicate a cooldown after February’s hotter-than-expected 275,000 new jobs created. Further, it would reassure traders that the US economy is not too hot to the touch after Thursday’s ADP data showed private sector added 184,000 hires in March.
  • Against that backdrop, the US dollar was cautious of moving around too much. Consolidation efforts had swept forex dealmaking prior to the jobs release today. The EURUSD pair was floating near $1.08 after three straight days of gains. The USDJPY kept traders on edge as it hovered near its 34-year high around ¥152.00 while Japan officials were on intervention watch.