# Dollar jumps as U.S. job gains, wage growth beat expectations
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-05
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Dollar Jumps as U.S. Job Gains Beat Expectations
Meta Description: Get the latest news on the dollar surge as U.S. job additions and wage growth exceed expectations. Stay informed with Reuters.
URL: https://financedigest.com/dollar-jumps-as-u-s-job-gains-wage-growth-beat-expectationshtml

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# Dollar jumps as U.S. job gains, wage growth beat expectations

By Karen Brettell

NEW YORK (Reuters) – The dollar jumped on Friday after data showed that U.S. [employers added more jobs than expected](https://www.financedigest.com/employer-expectations-and-technology-causing-health-deficit-amongst-employees.html "Employer Expectations And Technology Causing Health Deficit Amongst Employees") in April, while wages also grew more than economists’ anticipated.

Employers added 253,000 jobs, above economists’ forecasts for a gain of 180,000. U.S. average hourly earnings rose at an [annual rate](https://www.financedigest.com/automotive-gas-charged-shock-absorbers-market-worth-will-reach-us-2-9-bn-in-2021-grow-at-overall-compound-annual-growth-rate-cagr-of-5-0-between-2021-and-2031.html "Automotive Gas Charged Shock Absorbers Market worth will reach US$ 2.9 Bn in 2021, grow at overall compound annual growth rate (CAGR) of 5.0% between 2021 and 2031") of 4.4%, above expectations for a 4.2% increase.

But [data for March was also revised lower to show 165,000 jobs](https://www.financedigest.com/euro-zone-bond-yields-rise-after-u-s-jobs-data.html "Euro zone bond yields rise after U.S. jobs data") added instead of 236,000 as previously reported.

“I think the headline number is probably not as strong as it looks given the backward revisions,” said Vassili Serebriakov, an FX strategist at UBS in New York.

Friday’s [jump in the dollar](https://www.financedigest.com/dollar-jumps-euro-dips-before-fed-minutes.html "Dollar jumps, euro dips before Fed minutes") after the data is also likely in part due to investors who were short the greenback, or betting it would fall, covering their positions, he added.

The dollar has fallen from a 20-year high last September as investors adjust for the likelihood that the Federal Reserve is at or near the end of its [tightening cycle and may begin cutting interest rates](https://www.financedigest.com/fed-delivers-small-rate-hike-opens-door-to-pause-in-tightening-cycle.html "Fed delivers small rate hike, opens door to pause in tightening cycle") if the economy continues to slow.

While the U.S. economy is slowing, however, there are still pockets of strength, which is making investors hesitant to get too bearish on the currency for now.

In the [near term](https://www.financedigest.com/automotive-glass-market-to-witness-sales-slump-in-near-term-due-to-covid-19-long-term-outlook-remains-positive.html "Automotive Glass Market to Witness Sales Slump in Near Term Due to COVID-19; Long-term Outlook Remains Positive") it’s hard to get a lot of momentum until we have a more clear directional signal from U.S. data,” said Serebriakov. “For us the resolution ultimately is for consistently weaker U.S. data and a [weaker dollar](https://www.financedigest.com/oil-prices-rise-as-weaker-dollar-offsets-china-covid-19-concerns.html "Oil prices rise as weaker dollar offsets China COVID-19 concerns") ultimately and a more dovish Fed.

Fed funds futures [traders are pricing in around 78 basis points](https://www.financedigest.com/traders-ramp-up-bets-on-75-basis-point-ecb-sept-hike-bond-yields-jump.html "Traders ramp up bets on 75 basis-point ECB Sept hike, bond yields jump") of cuts by year-end. The [Fed raised rates by 25 basis points](https://www.financedigest.com/fed-officials-still-leaning-to-75-basis-point-rate-hike-in-july.html "Fed officials still leaning to 75-basis-point rate hike in July") to 5% to 5.25% on Wednesday and dropped from its policy statement language saying that it “anticipates” further rate increases would be needed.

The [dollar index hit](https://www.financedigest.com/u-s-dollar-struggles-pound-hits-one-year-high.html "U.S. dollar struggles, pound hits one-year high") a session high of 101.77 and the euro fell to $1.0967. The [dollar also jumped](https://www.financedigest.com/dollar-jumps-u-s-stocks-buck-global-rally.html "Dollar jumps, U.S. stocks buck global rally") to 135.13 against the Japanese yen.

[Inflation data due next week](https://www.financedigest.com/hungary-cenbank-seen-hiking-100-bps-to-11-75-next-week-as-inflation-surges.html "Hungary cenbank seen hiking 100 bps to 11.75% next week as inflation surges") is the next major U.S. [economic focus](https://www.financedigest.com/european-bourses-steady-as-focus-remains-on-key-economic-data.html "European bourses steady as focus remains on key economic data").

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[Currency bid](https://www.financedigest.com/evergrande-jitters-pull-risk-currencies-lower-dollar-gains-on-safety-bid.html "Evergrande jitters pull risk currencies lower, dollar gains on safety bid") prices at 9:26AM (1326 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 101.5800 101.3400 +0.24% -1.846% +101.7700 +101.1100

Euro/Dollar $1.0986 $1.1014 -0.25% +2.53% +$1.1048 +$1.0967

Dollar/Yen 134.8500 134.2650 +0.44% +2.85% +135.1150 +133.8800

Euro/Yen 148.14 147.87 +0.18% +5.60% +148.2700 +147.6900

Dollar/Swiss 0.8943 0.8859 +0.95% -3.28% +0.8972 +0.8836

Sterling/Dollar $1.2583 $1.2575 +0.09% +4.07% +$1.2634 +$1.2559

Dollar/Canadian 1.3461 1.3540 -0.58% -0.64% +1.3539 +1.3460

Aussie/Dollar $0.6713 $0.6694 +0.31% -1.50% +$0.6744 +$0.6689

Euro/Swiss 0.9823 0.9756 +0.69% -0.73% +0.9849 +0.9754

Euro/Sterling 0.8729 0.8759 -0.34% -1.30% +0.8767 +0.8730

NZ $0.6271 $0.6279 -0.09% -1.20% +$0.6316 +$0.6265

Dollar/Dollar

Dollar/Norway 10.6040 10.6910 -0.80% +8.07% +10.6870 +10.5800

Euro/Norway 11.6480 11.7663 -1.01% +11.00% +11.7903 +11.6497

Dollar/Sweden 10.2140 10.2431 -0.53% -1.86% +10.2621 +10.1849

Euro/Sweden 11.2210 11.2807 -0.53% +0.64% +11.2945 +11.2213

(Reporting by Karen Brettell; Editing by Toby Chopra and Jonathan Oatis)


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