FX.co ★ Dollar Rises as Strong Jobs Report Eases Labor Market Fears

The dollar index surged beyond 97.3 following a surprisingly robust June employment report, which alleviated some concerns about the US labor market's condition, even as uncertainties regarding trade policies continued to linger. The US economy witnessed an increase of 147,000 jobs in June, a rise from May's 144,000 and significantly surpassing the market prediction of 110,000. Additionally, the unemployment rate dropped unexpectedly to 4.1%, countering the anticipated rise to 4.3%. Average hourly earnings recorded a 0.2% increase, falling just short of the expected 0.3% growth. On the fiscal side, the House of Representatives advanced President Trump's comprehensive tax and spending legislation, clearing a significant step toward a final vote in Congress. This legislation is anticipated to widen the US budget deficit by more than $3 trillion. Attention in the markets remains fixed on trade developments, with the Commerce Department poised to release updates on new trade agreements before the looming July 9 deadline for re-enacting the divisive "Liberation Day" tariffs.