US Dollar Retreats from Initial Gains Despite Strong NFP Report

The US Dollar Index (DXY) has retreated to 104.30, paring back steep initial gains on Friday following a surprising beat in the Nonfarm Payrolls (NFP) report.

The report revealed a robust labor market, bolstering the Dollar’s bullish stance. Despite this, the likelihood of a rate cut from the Federal Reserve (Fed) in June remains high and stable.

The trajectory of the Fed’s easing cycle will continue to be guided by US economic data, with consensus still leaning towards a potential initiation in June. Market attention will turn to Consumer Price Index (CPI) figures for March next week, providing further insights into the economic landscape.