EURUSD Exchange Rate

The U.S. dollar fell against its major counterparts in the New York session on Friday, as weaker-than-expected jobs data for April boosted hopes of a rate cut by the Federal Reserve in September.

After growing for fifteen consecutive months, U.S. service sector activity unexpectedly contracted in the month of April, according to a report released by the Institute for Supply Management on Friday. The ISM said its services PMI dipped to 49.4 in April from 51.4 in March, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 52.0.

Euro area jobless rate remained unchanged at a record low for the fifth month in a row in March and the unemployment decreased, while a tight labor market could urge the European Central Bank to remain cautious even as policymakers gear up for an interest rate cut in June. The seasonally adjusted unemployment rate was 6.5 percent in March, which is the same level as in the previous four months.

After growing for fifteen consecutive months, U.S. service sector activity unexpectedly contracted in the month of April, according to a report released by the Institute for Supply Management on Friday.

Market attention now shifts to today's U.S. NFP reading, which could provide insights into the Fed's forthcoming monetary policy decisions.

Powell's dovish stance prompted a sharp decline in the strength of the U.S. dollar, while gold prices rebounded on the prospect of a softer dollar.

The U.S. dollar surged and equities stumbled following the release of the U.S. employment cost index, which revealed a robust 1.2% increase, the sharpest uptick in a year.

The Japanese Yen experienced a significant fluctuation, moving more than 500 pips against the U.S. dollar in the last trading session. This volatility was driven by market speculation regarding potential intervention by Japanese authorities after the Yen surpassed the 160 mark against the dollar.