The U.S. Dollar Index pared earlier losses to trade near the 100 level on Friday and was on track for a second consecutive weekly gain, as markets digested a stronger-than-expected April jobs report.
DXY pares losses, heads for second week of gains
While the data signaled a cooling in the labor market, it also highlighted underlying resilience, helping to ease fears of an imminent slowdown. This marked the first comprehensive look at employment conditions since President Donald Trump’s announcement of sweeping new tariffs, which have added uncertainty to the economic outlook.
Despite the better-than-expected payroll numbers, bond markets continued to reflect concerns that escalating trade tensions could dampen growth. Yields fell as investors increased bets that the Federal Reserve may be forced to respond with rate cuts—potentially up to four this year—as a preemptive measure against the risk of a slowdown.
Market sentiment by trader developments
Market sentiment received an additional boost following reports that China is considering resuming trade negotiations with the U.S. Chinese officials, however, maintained a firm stance, stressing that any talks must be based on mutual respect. They reiterated that the U.S. must demonstrate sincerity by removing all unilateral tariffs, stating that if Washington truly wishes to return to the negotiating table, it must first correct its “wrong practices.”
