The Greenback was explosively volatile during trading on Friday after March’s mixed job report prompted investors to offload and reload Dollar positions in a fighting bid to be on the winning trade.
Although the disappointing headline NFP figure was a tepid 98k in March, the jobless rate unexpectedly dropped to the lowest level in almost 10 years at 4.5%. With average earnings hitting the 0.2% expectations, it may be fair to say that the report was a mixed bag with a unique touch.
The immediate market reaction has seen expectations rapidly diminish over the Federal Reserve raising rates in June with the probability dropping to 61%. Although the Dollar initially found itself exposed to downside shocks in the immediate aftermath of the release, prices have fully recovered with the Dollar Index trading towards 100.90 as of writing.
While there is a possibility of the Dollar edging higher as bulls cheer the unexpected drop in unemployment rates, gains could be limited if the probability of the Federal Reserve hiking rates in June drops further. From a technical standpoint, a breakout above 101.00 on the Dollar Index could open a path higher towards 101.50.
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