USD advanced against most of its major counterparts in the European session on Monday, as investors prepared for two crucial events later this week - the Trump administration's announcements on reciprocal tariffs on Wednesday and the release of the U.S. March labour market data on Friday.
The U.S. Dollar Index (DXY), which measures the U.S. currency's value relative to a basket of foreign currencies, edged up 0.03% from its previous close to104.08.
Markets and businesses remain on edge, bracing for potential disruptions from the tariffs President Donald Trump threatens to impose the so-called reciprocal tariffs on all U.S. trading partners on April 2. Should the tariffs be substantial, affected nations are anticipated to retaliate, triggering FX market volatility in the subsequent days.
Friday’s employment report for March will offer an early indication of how Musk-led government payroll cuts are influencing the U.S. job market. Though it won’t provide a complete picture, a marked rise in unemployment could rattle already nervous investors.
Economists expect the report will show the U.S. economy added 128,000 new jobs in March, the unemployment rate increased to 4.2% from 4.2% in February, and the annual wage growth eased to 3.9% from 4.0%.