In the week ahead: U.S. CPI, ECB Monetary Policy Statement, FOMC Minutes

The EUR/USD pair ended the session almost unchanged on Friday ending the week on positive with gains of 0.40%.

On Friday, the US Bureau of Labor Statistics (BLS) revealed that the economy added more jobs than expected. Nonfarm Payrolls for March rose by 303K, crushing estimates and previous readings of 200K and 270K.

Further data showed the Unemployment Rate ticking lower from 3.9% to 3.8%, while Average Hourly Earnings were aligned to the consensus.

Elsewhere, the Richmond Fed President Thomas Barkin commented the report was quite strong, adding that the reduction in inflation has been uneven.

Traders' focus shifts to this week's data, with the release of US inflation data and consumer sentiment. On the EU’s front, the European Central Bank will feature its monetary policy meeting, which will be the highlight of the week.

Gold prices surged to record highs on Friday ending the session 1.2% higher, shrugging off easing bets on U.S. rate cuts as safe haven demand for the yellow metal remained buoyant ahead of more cues on the U.S. economy.

The report, released on Friday, showed the U.S. labor market remained strong. Such a scenario gives the Federal Reserve little impetus to begin trimming interest rates early.

Worsening global geopolitical concerns also kept safe haven demand for gold alive. The Russia-Ukraine war continue to rage on, with new strikes on the Zaporizhzhia nuclear plant causing some alarm. In the Middle East, concerns over a war between Iran and Israel also remained in play, although Israel was seen holding some peace talks with Hamas in Egypt.

Oil prices posted minor losses on Friday but kept their strong weekly gains ending the week more than 4% higher as geopolitical tensions bolstered bets on potential supply disruptions, though easing bets on sooner Federal Reserve rate cuts following a strong jobs report tempered gains.

This report from U.S. on Friday has undermined hopes that the Federal Reserve will start cutting interest rates as soon as June, a cutting cycle that would likely increase economic activity and thus demand for crude in the world's largest economy.

Sentiment on oil prices was boosted chiefly by the prospect of Iran joining the Israel-Hamas war, after Tehran threatened retaliation for what it viewed as an Israeli strike on an Iranian embassy in Syria.

U.S. stocks finished higher on Friday after a strong jobs report reinforced the view that the economy remains healthy even as it suggested the Federal Reserve could delay cutting interest rates. At the close, US 500 posted 1.02% daily gains while US 30 and US Tech 100 added 0.76% and 1.16% respectively.

U.S. Labor Department data showed employers hired far more workers in March than expected and kept steadily lifting wages, suggesting the economy ended the first quarter on solid ground.

The data stoked expectations the Fed will likely delay cutting interest rates given that a recession is nowhere in sight.

This week's consumer price index (CPI), which is expected to show core inflation slowing to 3.7% in March from 3.8% the prior month, is likely to shape near-term Fed policy.