Dollar Rises After Stronger-Than-Expected US Jobs Data
Markets moved quickly in favor of the dollar after fresh US employment figures came in above expectations, reinforcing the view that the American economy still has enough momentum to delay near-term rate cuts.
The shift prompted investors to reprice the interest-rate outlook and increased demand for the US currency in early trading.
Official data showed US nonfarm payrolls rose by about 130,000 in January, following an estimated increase of roughly 50,000 in December.
The reading exceeded market forecasts near 70,000, easing fears of a sharp labor-market slowdown and supporting the dollar across major pairs.
Rates and unemployment reshape expectations
The stronger jobs report coincided with a dip in the unemployment rate to 4.3% in January, compared with levels around 4.4% during 2025, while average hourly wage growth was broadly steady near 3.7% at the start of 2026.
Together, these signals strengthened the case for a cautious Federal Reserve, helping the dollar regain traction.
On the political front, US President Donald Trump praised the jobs data as evidence of economic strength and renewed calls for lower interest rates to reduce borrowing costs.
Meanwhile, traders boosted bets on a rate hold at the Fed’s next meeting, reflecting a rapid shift in market pricing.
FX moves: pressure on the euro, gains versus the franc
In trading, the dollar advanced against the Swiss franc, while the euro slipped versus the US currency as investors favored dollar-denominated assets.
The dollar index also edged higher, aiming to recoup losses from the previous three sessions on improved sentiment after the data release.
Japanese yen stays firm amid political developments
In Asia, the Japanese yen maintained a strong tone and gained against the dollar before trimming part of its move, supported by local factors tied to domestic political developments.
Other currencies were mixed, with the Australian dollar rising, the Swedish krona weakening, and the dollar little changed against the offshore yuan.
Investors are now watching additional releases, including weekly jobless claims and inflation readings, for clearer guidance on the US rate path and whether the dollar’s rebound can extend in the sessions ahead.
