Dollar Surges After Strong U.S. Jobs Report 💵📊
The U.S. dollar rallied Wednesday after January’s jobs data crushed expectations, reinforcing confidence in the resilience of the American economy.
🔹 130K jobs added vs. 70K forecast
🔹 Unemployment dips to 4.3%
🔹 Markets now see a 94% chance of no rate cut at the next Fed meeting
The dollar gained sharply against the Swiss franc and euro, with the DXY rebounding after three days of losses. Strong payrolls + firm earnings = reduced urgency for Fed easing.
However, markets still price in about 50bps of cuts later this year, keeping rate-cut hopes alive for June.
Notable FX moves:
🇯🇵 Yen continues outperforming after Japan’s political shift
🇦🇺 Aussie hits a 3-year high as RBA signals inflation fight isn’t over
🇬🇧 Pound edges higher
🇨🇳 Offshore yuan slightly weaker
Bottom line: Strong labor data supports the dollar short term, but rate-cut expectations haven’t fully disappeared. Volatility likely continues in FX markets.