In the Asian session on Monday (April 10), the U.S. dollar index rose, with the latest price of the U.S. dollar at 102.12, an increase of 0.02%. Earlier data showed that jobs in the world’s largest economy rose last month, suggesting the Federal Reserve may have to raise interest rates next month.
Ahead of the jobs report, interest rate futures markets had been betting the Fed would pause rate hikes at its May policy meeting. Markets are now pricing in a 70% chance of a 25 basis point rate hike from the Fed, although multiple rate cuts before the end of the year have also been priced in. “Fed officials are likely to continue their message of higher rates for longer ahead of their May policy meeting, supporting expectations of one last rate hike and providing support for the dollar,” said Karl Schamotta, chief market strategist at Corpay.
