USD Strength Limited Despite Jobs Data as Tariff Concerns Weigh

The US dollar's rally following strong employment data proved short-lived as ongoing tariff concerns capped gains. EUR/USD recovered from 1.0760 to 1.0810 after initial dollar strength faded. USD/JPY retreated from 145.80 highs to 145.20 as risk appetite waned on trade uncertainty. USD/CHF failed to sustain breaks above 0.8950, while EUR/CHF held steady near 0.9680. Market participants remain cautious about potential trade policy shifts that could disrupt global commerce and currency flows. The muted dollar response to positive economic data suggests traders are pricing in heightened geopolitical risks. Technical indicators show major pairs consolidating within recent ranges as markets await clarity on trade policies. The disconnect between strong fundamentals and limited USD appreciation indicates potential volatility ahead, particularly for trade-sensitive pairs like USD/JPY and commodity currencies.