Anna 
The U.S. dollar index surged to a seven-week high in response to a strong January jobs report, indicating that employers added significantly more jobs than expected. Nonfarm payrolls increased by 353,000, surpassing economists’ expectations of a gain of 180,000. Average hourly earnings also rose by 0.6%, following a 0.4% increase in December.
The robust jobs report led to a broad rally in the U.S. dollar, with the dollar index reaching 104.04, the highest since December 12. Marc Chandler, Chief Market Strategist at Bannockburn Global Forex, stated that the data exceeded expectations, reducing the chances of a near-term Federal Reserve interest rate cut. Traders are now pricing in a 21% chance of a rate cut in March, down from 38% on Thursday, and a 75% probability for May, down from 94%, according to the CME Group’s FedWatch Tool.
The U.S. Treasury yields, which had experienced a recent decline due to safe-haven demand amid concerns about the financial health of regional banks, rebounded as these concerns eased. The dollar’s recent weakening trend, along with falling Treasury yields, appears to be reversing, with analysts expecting a firmer dollar tone following the strong jobs data.
In the cryptocurrency market, bitcoin experienced a minor decline of 0.19%, trading at $43,020. The overall market sentiment reflected the impact of the strong U.S. economic data on traditional currencies and markets.
