US Job Market Strong, but Cracks Show

The US labor market remains resilient, with key sectors such as health care, transport, finance, and social assistance showing solid hiring momentum. However, government employment declined, and long-term unemployment edged up—a sign that not all parts of the labor market are firing equally.

Meanwhile, average weekly hours remained at 34.3, and labor force participation ticked up to 62.6%.

Markets are now digesting whether these figures are strong enough to delay potential Fed easing or merely reflect a cooling but still healthy labor engine.

Currencies

The euro lost ground against the dollar on Friday following a stronger-than-expected US nonfarm payroll report. April's job creation came in at 177,000, surpassing expectations of 138,000, although it marked a slowdown from March’s 185,000. Private sector hiring added 167,000 jobs, also topping forecasts. Despite the upbeat figures, the unemployment rate held steady at 4.2%, and wage growth missed slightly at 0.2% MoM (vs 0.3% expected). The EUR/USD pair trimmed gains, slipping toward the 1.1300 level, as traders recalibrated Fed rate expectations.

Gold

Gold prices (XAU/USD) hovered near $3,262 on Friday, snapping a three-day losing streak. The yellow metal had come under pressure earlier in the week amid optimism over de-escalating trade tensions. Friday’s rebound was partly driven by headlines that China is open to resuming trade talks with the US, while President Trump’s tariff relief for the auto sector added to the sentiment shift. These developments injected a degree of caution back into the markets, lending modest support to the safe-haven metal despite stronger US jobs data.