Dollar Index Holds Ground
The US Dollar Index (DXY) edged higher on Thursday, climbing to 98.25 after rebounding from the 98.00 level. Despite the modest recovery, the Greenback remains locked within Wednesday’s trading range, with investors cautious ahead of upcoming US economic releases.
Weak Job Openings Report Weighs on USD
The dollar’s retreat from weekly highs near 98.60 came after a softer-than-expected JOLTS Job Openings report on Wednesday. The data, seen as a sign of cooling labour demand, boosted market expectations of a Federal Reserve rate cut in September, limiting the currency’s rebound.
Fed Officials Signal Rate Cuts
Adding to the dovish tone, Fed Governor Christopher Waller reiterated in a CNBC interview his support for a September rate cut, hinting at the possibility of “multiple cuts” in the next six months. These remarks have intensified downward pressure on the dollar and reinforced investor bets on policy easing.
Focus Shifts to US Labour and Services Data
Attention now turns to fresh economic indicators:
- ADP Employment Change – A private-sector jobs measure expected to show further evidence of a slowing labour market.
- ISM Services PMI – A key gauge of business activity in the services sector, which makes up the bulk of the US economy. A reading above 50 signals expansion, while below 50 indicates contraction.
While these reports could spark short-term moves, analysts note that Friday’s Nonfarm Payrolls (NFP) will be the decisive release, providing a clearer picture of the Fed’s near-term policy path.
Market Consensus
Expectations remain tilted toward softer job creation in August, keeping the door open for September easing and leaving the US Dollar under pressure despite today’s modest uptick.