Last week, the US dollar rose by robust U.S. job growth numbers for March that firmed market expectations that the Federal Reserve will increase the pace of interest rate hikes in an effort to blunt rising inflation.
Friday, the US nonfarm payrolls report showed that 431K jobs were added last month, versus estimates of 490K, while data for February job increases were revised higher. The unemployment rate dropped to 3.6%, lowest since February 2020.
New York Fed President John Williams said that The Fed needs to move monetary policy towards a more neutral stance, but the pace at which it tightens credit will depend on how the economy reacts.
In the upcoming week, the minutes of the FOMC meeting due Wednesday is expected to provide investors with an insight into the Fed’s thinking on monetary policy.
In the last meeting, the Federal Reserve raised interest rates for the first time since 2018 and laid out an aggressive plan to push borrowing costs to restrictive levels next year in a pivot from battling the coronavirus pandemic to countering the economic risks posed by excessive inflation and the war in Ukraine.
Additionally, the economic calendar features reports on ISM Non manufacturing PMI, initial jobless claims, service PMI and Factory Orders.
The war in Ukraine is main focus. Ukraine says its troops have retaken control of more than 30 towns and villages in the Kyiv region since Russia announced this week it would scale down its operations around the capital and in the neighbouring northern region of Chernihiv to focus on battles in the east.
04 Apr 22 (Mon)