Euro Fell Against the Dollar Ahead of a Key Jobs Report

Euro Fell Against the Dollar Ahead of a Key Jobs Report

The euro declined on the first day of April against a strengthening dollar ahead of a key U.S. jobs report that could help the central bank decide where to make an interest rate hike of up to 50 basis points next month. As a reminder, the Federal Open Market Committee (FOMC) will next decide on policy at a May 3-4 meeting. 

Meanwhile, the single currency failed to find any support from surging eurozone inflation, which jumped to 7.5% in March. 

Economists predict Friday’s U.S. Labor Department’s report will show that close to half a million were added in March. 

The dollar index, which tracks the U.S. currency against six peers including the euro, gained 0.16% to 98.472 at 11:20 GMT. On Thursday, the dollar index added 0.50%. 

The U.S. dollar also benefited from safe-haven flows.

Euro and the U.S. dollar 

The euro dropped 0.1% against the U.S. dollar to $1.10560, following its retreat the previous day from a one-month high. The euro declined as some hopes for a ceasefire in Ukraine faded. Peace talks were ongoing on the first day of the month.

Nevertheless, the euro was still set for weekly gains.

Against the Norwegian crown, the euro dropped 0.53% to 9.6840, as the Norwegian currency recovered from yesterday’s sharp declines. The Norwegian crown also gained 0.53% versus the U.S. dollar. 

The Norwegian currency recovered on Friday on a combination of  better-than-expected domestic PMI and labor market data. Oil prices also helped to boost the currency.

The Australian dollar gained 0.4% against the U.S. dollar to $0.75110.

Bitcoin dropped 1.1% to $45,268, after touching a one-week low as U.S. and European lawmakers moved to tighten their positions regarding the crypto. On Monday, the world’s most well-known cryptocurrency touched $48,234.00 for the first time since the start of this year.