Forexlive Americas FX news wrap 4 Apr; Better US jobs don't help markets. Stocks tumble

Major US indices are closing sharply to the downside with declines near by 5.5% – 6%Crude oil settles at $61.99Geopolitics: Russia military strikes energy facility in Kherson on FridayEU Trade commissioner Sepcovic: US tariffs are damaging and unjustifiedUK offered to cut tariffs on beef and fish.Trump: Will sign executive order to keep TikTok open for 75 more daysWH CEA Chair Miran: Tax cuts and deregulation aheadWashington Post: Trump chose the formula for the tariffsVietnam's general secretary: Vietnam ready to cut tariff to 0Powell Q&A: People are still experiencing a high price levelPowell: Larger tariffs risk higher inflation and slower growth. Will wait for clarityTrump says it would be a perfect time for Powell to cut ratesTrump indicates he is in deal mode after call with VietnamTrump: China played it wrong, they panicked -- the one thing they cannot afford to doTrump writes that "my policies will never change"Canada March employment change -32.6K versus 10.0K estimateUS March non-farm payrolls +228K vs +135K expectedForexLive European FX news wrap: China counter-tariffs amplify market routRisk-off flows intensify ahead of US tradingThe March 2025 U.S. jobs report delivered a strong upside surprise with non-farm payrolls rising by 228K, well above the 135K expected, and supported by a +2K net revision to previous months. The unemployment rate ticked up to 4.2%, slightly higher than forecast, though the participation rate improved to 62.5%, suggesting more workers re-entered the labor force. Wage growth held steady, with average hourly earnings rising 0.3% m/m and 3.8% y/y, slightly softer than last month. Private sector hiring was solid at +209K, while full-time jobs rebounded strongly by +459K after a massive drop last month. The leisure and hospitality sector led gains with +43K jobs, bouncing back from a weather-suppressed February. Despite the upbeat data, markets are showing a disconnect, as the U.S. dollar ticked modestly higher, while rate markets still price in over 5 Fed cuts this year—highlighting ongoing tension between labor market strength and inflationary concerns.Details of the report showed. Non-farm payrolls: +228K vs. +135K expected (Prior revised to +117K from +151K)Two-month net revision: +2KUnemployment rate: 4.2% vs. 4.1% expected (Unrounded: 4.1519% vs. 4.1396% prior)Participation rate: 62.5% vs. 62.4% priorU6 underemployment rate: 7.9% vs. 8.0% priorAverage hourly earnings (m/m): +0.3% (in line)Average hourly earnings (y/y): +3.8% vs. +3.9% expected (prior +4.0%)Average weekly hours: 34.2 vs. 34.1 priorPrivate payrolls: +209K vs. +140K expectedManufacturing payrolls: +1K vs. +4K expected (prior revised to +8K)Government jobs: +19K vs. +11K priorHousehold survey: +201K vs. -588K priorFull-time jobs: +459K vs. -1.193M priorLeisure & hospitality: +43K vs. -17K priorPrior to the US jobs report, China notes reciprocal tariffs against the US. That sent the AUD and the NZD lower. They were the weakest of the major currencies today versus the US dollar (the US dollar rose by 3%and 2% respectively). The dollar gain the most versus the JPY and the CHF.The US dollar is closing the week mixed versus the major currencies. The USD was higher vs the GBP, AUD and NZD, but was lower vs the EUR, JPY, CHF and the CAD. Below is a graphical look at the percentage changes versus the greenback for the major currencies.In the US debt market yields were sharply lower earlier today ahead of the US jobs report, but rebounded higher after the better-than-expected data. The levels going into the close are showing:2- year yield 3.678%, -4.6 basis points. The low yield for the day reached 3.467%5-year yield 3.727%, -3.1 basis points. The low yield for the day reached 3.526%.10 year yield 4.013%, -4.2 basis points. The low yield for the day reached 3.860%30 year yield 4.426%, -5.7 basis points. The low yield for the day reached 4.331%.Even though yields are well off their lows for the day, the current changes for the week are still down 22 to 26 basis points across the yield curve. Below is the high basis point change, the low basis point change and the current basis point change. US stocks fell sharply for the second consecutive day. The final numbers are showing:Dow industrial average -2231.07 points or -5.5% or 38314.86 S&P index -322.44 points or -5.97% at 5074.05..NASDAQ index -962.82 points or -5.82% and 15587.79.Russell 2000-83.51 points or -4.37% and 1827.03The trading week for each of the major indices was the worst going back to the 2020 pandemicDow industrial average fell -7.86%.S&P index for -9.08%NASDAQ index fell 10.02%Russell 2000-9.70% Oil prices also moved sharply lower this week. For the trading week, the price of crude oil fell -12.19%. That is its worst week since a 12.72% decline during the week of March 13, 2023.The price of crude oil fell on the back of the tariff news and expectations of slower global growth. In addition, ​the OPEC+ alliance, led by Saudi Arabia and Russia, anno