FX.co ★ Dollar Little-Changed Amid Escalating Trade Tensions, Strong US Jobs Report

The dollar index remained just above the 102 mark, hovering close to its weakest point in six months, as investors evaluated the impact of increasing trade tensions alongside stronger-than-anticipated U.S. employment figures. China's finance minister declared a 34% tariff on all American imports, mirroring the duty that President Trump imposed earlier in the week. Heightening concerns about potential economic consequences—such as increased prices, slowed growth, and a recession threat—have fueled speculation about more assertive interest rate cuts from the Federal Reserve. Traders are now estimating a 50% likelihood of four 25 basis point cuts within the year, an increase from three anticipated cuts earlier that week, with the initial reduction expected in June. Meanwhile, regarding economic data, the March report revealed that the U.S. economy added 228,000 jobs, substantially higher than the revised figure of 117,000 in February and significantly surpassing the market forecast of 135,000.