US Unemployment Rate Rises to 4.1% Amid Trade Policy Shifts; East European Currencies Strengthen Following German Spending Plan

The US unemployment rate increased to 4.1% in February, up from 4% in January, according to the Labor Department's Bureau of Labor Statistics. This rise occurred amidst President Trump's implementation of tariffs on goods from China, Canada, and Mexico, and subsequent countermeasures from Beijing. The report did not reflect recent layoffs within the Department of Government Efficiency (DOGE). Job growth was primarily in low-wage sectors. East European currencies experienced a rally this week. Strategists anticipate Germany's plan to increase spending on defense and infrastructure, financed by debt, will positively influence asset classes. Hungarian, Polish, and Czech bonds followed a global increase in yields after the announcement.