Dollar Weakens Ahead of US Jobs Data, DXY Under Pressure at 98.25
The US Dollar Index (DXY) moved in negative territory and fell slightly to around 98.25 at the start of the European session on Tuesday. This weakening occurred as market participants adopted a wait-and-see approach ahead of the release of a series of US economic data, particularly the delayed November jobs report.
The market's primary focus is on today's release of the October and November Nonfarm Payrolls (NFP). If the data shows a slowing labor market, expectations of a Fed interest rate cut could strengthen, which would typically weaken the dollar. Conversely, if the results are stronger than expected, the dollar could potentially gain momentum in the short term.
Last week, the Fed cut interest rates by 25 basis points to a range of 3.50%-3.75%, and the market now rates a 76% chance the Fed will hold rates in January 2026. Fed officials John Williams assessed that monetary policy is well-positioned for next year, while Stephen Miran stated that policy remains too tight. The market is now awaiting further comments from Fed officials this week—if the tone is more "tough," the DXY could rebound. (az)
Source: Newsmaker.id
