• DXY heads for third weekly gain in-a-row, back near 2019 highs. 
  • Greenback among top performers on Friday, consolidates weekly gains versus majors. 

The greenback, measured by the US Dollar Index, rose on Friday and it was about to end the week with a gain of 0.15%. It climbed for the second consecutive day approaching to 97.70, the 2019 highs. 

The US employment report showed that the US economy added 196K jobs in March while the unemployment rate stood at 3.8%. Average hourly earnings were up 3.2% from a year ago, below the 3.4% of market consensus. Many analysts considered that the labor market numbers offered a relief to Federal Reserve officials following the bad report for February. Still, they expect growth to be significantly lower over the current year compared to 2018. 

Initially, the US dollar lost ground after the report but rebounded sharply and turned positive across the board, despite lower US yields. It peaked after the beginning of the American session and then consolidated gains on a quiet session. The DXY peaked at 97.46, the highest level since April 2 and near the end of the week was hovering around 97.40, on its way to the second highest close for the year. 

The trend in DXY still points to the upside but to clear the way to more gains, it needs to break the key strong resistance area located around 97.70 that since November of last year was tested several times. 

Key reports for next week:

“In the US, the consumer price index could have increased significantly in March (+0.4% m/m), reflecting a surge in gasoline prices. This, combined with a positive base effect, may have caused the year-on-year rate to rise three ticks at 1.8%. Core inflation, for its part, may have risen 0.2% in the month, allowing the annual rate to remain unchanged at 2.1%. The March iteration of the NFIB Small Business Optimism Index will be published alongside February’s factory orders and Job Openings and Labor Turnover Survey (JOLTS). Finally, the Fed will release the minutes of its March 20 meeting”, resumed National Bank of Canada analysts. 

Another critical event will be the European Central Bank meeting and Chinese trade and CPI reports. The Brexit drama will continue and traders will also look at the developments regarding the US-China trade talks. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD: China, Fedspeak probe bulls near 0.7100, Aussie inflation expectations eyed

AUD/USD: China, Fedspeak probe bulls near 0.7100, Aussie inflation expectations eyed

AUD/USD treads water around 0.7080, after rallying to the fresh two-month high, as the recent Fedspeak and headlines surrounding the China tariffs seemed to have poked the bulls. The Aussie pair traders remain cautious ahead of the monthly Consumer Inflation Expectations from Australia.

AUD/USD News

EUR/USD defends US inflation-inspired gains near 1.0300 at one-month high

EUR/USD defends US inflation-inspired gains near 1.0300 at one-month high

EUR/USD flirts with the 1.0300 threshold, after posting the biggest daily gains to refresh five-week high, as traders reassess the risk profile during early Thursday morning in Europe. The reduction in the US inflation numbers propelled hopes that Fed could ease on its rate hike trajectory.

EUR/USD News

Gold extends recovery towards $1,800 as hawkish Fed bets trim

Gold extends recovery towards $1,800 as hawkish Fed bets trim

Gold price has picked bids below $1,790.00 and is extending its recovery above the immediate hurdle of $1,792.00 amid a broader risk-on in the global market. The precious metal is expected to continue its upside run-up after a healthy correction to near $1,808.00.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: How to trap a hungry bear

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: How to trap a hungry bear

Crypto markets moves higher. Placing a countertrend short is still ill-advised. Higher targets remain possible for all assets. BTC tests the lower half of an ascending channel for the third time. ETH continues displaying bearish divergence but underline market strength remains. XRP in a make-or-break situation.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures